SOURCE : NEW18 NEWS
Last Updated:January 11, 2025, 11:10 IST
Layoffs are likely to persist in 2025, with major global companies like Microsoft, BlackRock, and Ally Financial planning to downsize.
The World Economic Forum’s latest Future of Jobs Report sheds light on this trend, revealing that 41 per cent of companies aim to reduce their workforce due to AI automation.
Workforce reductions have been a significant issue across various sectors such as technology, finance, manufacturing, media, and retail over the past two years. Recent reports indicate that layoffs are likely to persist in 2025, with major global companies like Microsoft, BlackRock, and Ally Financial planning to downsize. A Business Insider report on January 9 highlights that these companies are focusing on cost-cutting strategies in response to rapid technological advancements, particularly the growing influence of artificial intelligence (AI).
The World Economic Forum’s latest Future of Jobs Report sheds light on this trend, revealing that 41 per cent of companies aim to reduce their workforce due to AI automation. While the report predicts that AI will lead to the displacement of 92 million jobs by 2030, it also forecasts the creation of 170 million new roles during the same period.
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Notably, companies like Dropbox, Google, and IBM have previously announced layoffs linked to AI. Here’s a look at the firms expected to implement job cuts in 2025:
BlackRock
BlackRock plans to reduce its workforce by approximately 200 employees out of its total of 21,000, according to Bloomberg. These layoffs are part of a strategy to align resources with the firm’s evolving objectives. However, these reductions will be offset by significant hiring efforts, with the company adding 3,750 new employees in 2024 and another 2,000 in 2025. BlackRock’s president, Rob Kapito, and COO, Rob Goldstein, emphasized the importance of reshaping the organization to meet strategic goals.
Bridgewater Associates
The world’s largest hedge fund, Bridgewater Associates, recently laid off 7% of its workforce as part of efforts to streamline operations. According to Business Insider, these reductions bring staffing levels back to where they were in 2023. Historically, the firm has faced challenges with employee retention; in 2019, founder Ray Dalio noted that nearly 30% of new hires departed within 18 months.
The Washington Post
To manage costs, The Washington Post is planning to eliminate fewer than 100 positions. A spokesperson clarified that these changes will not impact the newsroom and are intended to support the company’s transformation and sustainability goals. The organization aims to adapt to industry demands while reaching audiences through modern platforms, as reported by Reuters.
Microsoft
Microsoft is reportedly planning workforce reductions, focusing on underperforming employees. While specific numbers have not been disclosed, the company stated that it prioritizes cultivating high-performing talent. A spokesperson emphasized Microsoft’s commitment to employee growth and acknowledged that non-performance is addressed with appropriate actions, according to Business Insider.
Ally Financial
Ally Financial confirmed plans to lay off approximately 500 employees, representing about 4.5% of its workforce of 11,000. The company stated that the layoffs are part of ongoing efforts to optimize staffing levels while continuing to recruit for other key areas of the business. Ally implemented a similar round of layoffs in October 2023, as reported by the Charlotte Observer.
According to the latest data from Layoffs.fyi, a total of 545 tech companies laid off 1,52,074 employees in 2024. In the previous year 2023, 1,193 had sacked 2,64,220 employees.
These workforce reductions reflect broader industry shifts driven by technological transformation and economic challenges. While they underscore the challenges posed by automation, they also highlight the opportunities for growth and adaptation in a rapidly evolving labour market.
