Overview

June 2025 saw continued turbulence in the software and broader tech sector. Big tech firms, gaming studios, and chipmakers announced layoffs and voluntary exits, driven by AI investments, economic pressures, and shifting business strategies.

1. Major Layoffs & Buyouts

Microsoft cuts Washington-based software roles

In early June, Microsoft filed WARN notices revealing 305 layoffs in Washington state, predominantly impacting software engineers—roughly 22% of the cuts This followed a global reduction of over 6,000 jobs in May aimed at reducing management overhead and streamlining teams 

Google offers widespread voluntary exits

On June 11, Google rolled out a voluntary exit program targeting U.S. search, ads, commerce, and engineering teams. This is part of a larger drive to reduce headcount amid steep $75 billion in tech layoffs reported by Challenger, Gray & Christmas through May 

Sony’s Bend Studio slashes 30% of staff

Gaming publisher Sony confirmed layoffs at its Bend Studio, affecting approximately 30% of its employees. The cuts follow the cancellation of a new live‑service game. However, the studio is reportedly pivoting to a new, undisclosed project 

2. Upcoming & Ongoing Cuts

Intel preps Oregon fab layoffs

Intel plans targeted layoffs at its Oregon chip‑foundry operations, beginning in mid‑July. Though numbers aren’t confirmed, they could mirror the 15,000 fab roles cut last year. These jobs, often in logistics and manufacturing, are increasingly vulnerable to automation 

Over 170 U.S. companies filing WARN notices

June is expected to bring heavy WARN‑filing activity, with more than 170 U.S. companies, including major banks, retailers, and tech firms, alerting for planned layoffs. This trend reflects broader economic uncertainty tied to trade policy and shrinking business investments 

3. Why June’s Layoffs Are Driving the Trend

1. AI investment reshaping workforces – Firms like Microsoft and Google are channeling capital into AI infrastructure, with Microsoft projected to spend $80 billion this year. This reallocation forces reductions in traditional roles 
2. Corporate caution amid economic headwinds – Trade‑related uncertainties and a cautious global economy are pushing companies to streamline operations .
3. Efficiency over expansion – The shift from building out manpower to optimizing existing teams, especially with AI tools boosting productivity, is widespread

4. What Software Professionals Should Do

Microsoft – Global Restructuring with Regional Nuance

June’s reductions were performance-based – reportedly affecting ~1% of global staff, including coders and managers, India operations were unaffected by layoffs; Microsoft continues major AI & cloud investments, including a ₹3,000 cr ($3 billion) project plus rural AI skilling programs Internally, employees with strong AI contributions are being retained with retention bonuses, signaling a pivot to an AI-centric workforce 

Google – Voluntary Buyouts Signal Further Rebalancing

In June, Google offered voluntary exit packages to teams in search, ads, and engineering—on top of prior cuts, with industry tallies now over 75,000 job cuts so far in 2025 These buyouts reflect Google’s intent to rebalance headcount—trimming non-AI roles while investing heavily in AI development and infrastructure.

Strategic Advice: How Software Pros Can Pivot into AI-First Roles

1. Upskill in AI/ML & Vibe Coding

Technical roles sourcing candidates with AI/ML expertise, such as AI research engineers and ML engineers, are highly sought after—composing about 25% of tech job listings in 2025 Master “vibe coding”—using AI tools (e.g., Cursor, Bolt, Claude Code) for routine coding. Companies report 40% boosts in dev velocity, making AI fluency essential

2. Obtain Certifications & Hands-On Project Experience

Industry certifications like Microsoft AI-900, along with targeted degrees or diplomas, significantly increase employability compared to traditional qualifications Build a portfolio—try AI projects: chatbots, recommendation systems, or open-source contributions. A transition from Software Engineer to AI-focused roles often emphasizes demonstrable, practical AI work 

3. Develop Soft Skills & “Agency”

Beyond coding, companies value plus problem-solving, initiative, and communication—often referred to as “agency.” This includes the ability to frame and lead AI-driven initiatives and collaborate across teams .Data-science roles especially spotlight traits like curiosity, critical thinking, empathy, and ethical awareness 

4. Act Fast: Upskill Rapidly

With AI skills evolving at a pace 66% faster than traditional tech competencies, rapid upskilling is crucial to secure your position in the shifting workforce

5. Build a Network & Engage with AI Communities

Join local/global AI communities, meetups, and online forums (GitHub, OfferZen). Mentorship within these spaces can help guide your transition Consider hybrid hybrid-tech roles like AI solutions consultant or customer engineer, which blend technical knowledge with domain expertise—offering both upward mobility and strategic impact .

Summary

Microsoft is making cuts outside India but strategically retaining and rewarding AI talent.Google continues buyouts to refocus on AI-first engineering.The job market increasingly favors AI-skilled candidates, with a premium on both technical tools and problem-solving agency.For tech professionals: lean into AI dev, get certified, build real projects, and cultivate soft skills to future-proof your career.

5. Final Thoughts

June 2025 underscores a transformative moment: AI‑driven investment is sparking headcount reductions even as companies prepare for future-scale innovation. While layoffs remain a painful reality, proactive skill-building and strategic positioning can help software professionals navigate the shifting landscape and seize emerging opportunities.