June 2025 Software Industry Layoffs: A Comprehensive Analysis

Introduction

The software industry, a cornerstone of global innovation, faced significant turbulence in June 2025, as a wave of layoffs swept through major tech giants and startups alike. With over 62,000 jobs cut globally in the first half of 2025, the month of June alone contributed significantly to this figure, driven by economic uncertainty, shifting business priorities, and the rapid adoption of artificial intelligence (AI). This article, tailored for www.nriglobe.com, delves into the specifics of June 2025 layoffs in the software sector, analyzing the companies involved, the reasons behind the cuts, and their broader implications for the industry and its workforce, particularly for the Indian diaspora and tech professionals worldwide.

Overview of Layoffs in June 2025

According to Layoffs.fyi, 147 tech companies laid off 63,443 workers in the first half of 2025, with June marking a continuation of this trend. The software industry, encompassing companies developing software solutions, cloud services, and related technologies, saw significant reductions, particularly among high-profile firms. The layoffs were not limited to smaller startups but included industry leaders like Microsoft, Google, and ZoomInfo, reflecting a strategic shift across the sector.

Key Companies and Layoff Details

1. In addition to Microsoft, Google, and ZoomInfo, several other software and tech-related companies announced layoffs in June 2025, reflecting ongoing industry challenges. Below is an expanded list of companies with layoffs, focusing on those in the software sector or with significant software-related operations:
   1. Microsoft
      • Layoff Scale: Microsoft executed two rounds of layoffs in June, following 6,000 cuts in May. On June 2, 305 employees were laid off in Washington state, with over 300 additional cuts later in the month, totaling over 2,300 in Washington alone.
      • Affected Roles: Software engineers, product managers, technical program managers, product marketers, and legal staff, including 22 legal counsel and five paralegal roles.
      • Reasons: Microsoft cited organizational changes to position the company for success in a dynamic marketplace, with a focus on AI-driven automation (30% of code now AI-generated) and reducing management layers.
      • Impact on Indian Professionals: With significant operations in Hyderabad and Bengaluru, Indian employees, including H-1B visa holders in the U.S., were likely affected, though exact numbers are unavailable.
   2. Google
      • Layoff Scale: Google cut hundreds of jobs in its platforms and devices division, including Android, Pixel phones, Chrome browser, and Google TV teams.
      • Affected Roles: Primarily non-coders and middle managers, with budget reallocations from Google TV to YouTube’s premium streaming services.
      • Reasons: The layoffs reflect a strategic shift toward AI and premium services, with cost optimization amid economic uncertainty.
      • Impact on Indian Professionals: Google’s large India workforce in Bengaluru, Hyderabad, and Gurgaon may have faced indirect impacts, particularly for those in global roles.
   3. ZoomInfo
      • Layoff Scale: On June 9, ZoomInfo laid off 150 workers, approximately 4% of its 3,500-strong workforce.
      • Affected Roles: Sales, recruiting, and marketing teams, aimed at simplifying decision-making and focusing on core business functions.
      • Reasons: CEO Henry Schuck described the cuts as necessary to enhance efficiency in a competitive B2B software market.
      • Impact on Indian Professionals: ZoomInfo’s Chennai office, employing software engineers and data analysts, may have seen limited impact, though global roles could be affected.
   4. Disney (Product and Technology Divisions)
      • Layoff Scale: Disney announced layoffs of several hundred employees worldwide across its product and technology divisions, affecting less than 2% of these teams.
      • Affected Roles: Roles in software development and technology teams supporting Disney Plus, Hulu, and the upcoming ESPN streaming service, particularly in marketing, publicity, and development.
      • Reasons: The cuts were part of an effort to operate more efficiently, aligning with Disney’s focus on streaming platform enhancements.
      • Impact on Indian Professionals: Disney’s India operations, including tech teams in Mumbai and Bengaluru, may have been minimally impacted, but global software roles could be affected.
   5. eBay
      • Layoff Scale: eBay announced a small round of layoffs in Israel, affecting around 20 employees out of its 250-person workforce, marking its fourth round of cuts in the region since 2023.
      • Affected Roles: Primarily software development and IT roles within eBay’s technology services unit.
      • Reasons: The layoffs followed lower-than-expected revenue in 2025, despite a recent acquisition, as part of a broader cost-cutting strategy.
      • Impact on Indian Professionals: eBay’s India operations in Bengaluru and Chennai, which focus on software development, were not explicitly mentioned, but global restructuring could impact Indian employees.
   6. Commercetools
      • Layoff Scale: Commercetools, a software company providing APIs for online storefronts, laid off dozens of employees, including approximately 10% of its staff in early June.
      • Affected Roles: Software engineers, sales, and executive roles, including the chief revenue officer and CFO.
      • Reasons: The layoffs were due to failing to meet sales growth targets, prompting a restructuring to streamline operations.
      • Impact on Indian Professionals: Commercetools has a limited presence in India, but remote or global software engineering roles may have been affected.
   7. Progress Software (ShareFile Division)
      • Layoff Scale: Progress Software announced 199 layoffs at its ShareFile division in Raleigh, North Carolina, to be phased through June 2026.
      • Affected Roles: Software development, technical support, and administrative roles within the ShareFile business, which focuses on cloud-based file sharing.
      • Reasons: The layoffs followed Progress’s acquisition of ShareFile from Cloud Software Group, with a focus on integrating and streamlining operations.
      • Impact on Indian Professionals: Progress Software has a presence in India, particularly in Hyderabad, but the layoffs were primarily U.S.-focused, with potential indirect effects on global teams.
   Other Notable Software Companies
2. Intel: While primarily a hardware company, Intel’s software-defined vehicle platforms and marketing divisions saw layoffs in June, with an undisclosed number of workers affected. The company aimed to reduce operating costs by $500 million in 2025, with plans for further cuts of $1 billion in 2026. The increasing use of AI in marketing functions was cited as a factor
3. CrowdStrike: The cybersecurity firm laid off 500 employees (5% of its workforce) in May, with effects lingering into June. The company cited AI’s role in “flattening the hiring curve” as a key reason, highlighting the impact of automation on software-related roles.
4. OpenText: In February, OpenText announced 1,200 layoffs (1.7% of its workforce) to save $100 million annually, with some effects continuing into June. The company planned to reinvest in sales and engineering, indicating a shift in focus toward AI-driven solutions.

Reasons Behind the Layoffs

The software industry’s layoffs in June 2025 were driven by several interconnected factors:

1. AI and Automation: The rapid adoption of AI technologies, such as generative AI tools (e.g., Microsoft Copilot, Amazon CodeWhisperer), has reduced the need for certain roles, particularly in software engineering and support functions. Microsoft’s CEO Satya Nadella noted that 30% of the company’s code is AI-generated, signaling a shift toward automation.
2. Economic Uncertainty: Despite a strong overall U.S. job market (unemployment rate at 3.9% in February 2024), tech companies faced pressure to cut costs due to inflation, declining revenue in some sectors, and investor demands for profitability.
3. Overhiring During the Pandemic: Many tech companies, including Microsoft and Google, over-hired during the COVID-19 pandemic to meet surging demand for digital services. As consumer behavior normalized post-pandemic, companies adjusted their workforce to align with current needs.
4. Strategic Restructuring: Companies like Microsoft and Google are flattening hierarchies and reducing middle management to improve efficiency. This trend, coupled with a focus on high-growth areas like AI and cloud computing, led to targeted layoffs in less strategic divisions.
5. Copycat Layoffs: Experts like Stanford professor Jeffrey Pfeffer have described tech layoffs as a form of “social contagion,” where companies mimic competitors’ cost-cutting measures to appease investors and maintain stock prices.

Impact on the Indian Diaspora and Global Workforce

The Indian diaspora, a significant portion of the global tech workforce, has been notably affected by these layoffs. Indian professionals, particularly those on H-1B visas in the U.S. or working in India-based development centers, face unique challenges:

• H-1B Visa Holders: Layoffs at companies like Microsoft and Google likely impacted Indian engineers and managers in the U.S. on H-1B visas. These workers face the added pressure of finding new employment within 60 days to maintain visa status, a daunting task in a competitive job market.
• India-Based Operations: Major tech firms have large R&D centers in India, employing tens of thousands of software professionals. While June 2025 layoffs were primarily U.S.-focused, the global nature of these companies suggests potential ripple effects on Indian teams, especially in roles like software engineering and product management.
• Career Transitions: Indian professionals, known for their resilience and adaptability, are likely to pivot toward emerging fields like AI, machine learning, and cybersecurity. However, the immediate impact of layoffs includes financial strain and uncertainty, particularly for those supporting families in India or abroad.

Broader Implications for the Software Industry

The June 2025 layoffs signal several trends shaping the software industry’s future:

1. AI-Driven Transformation: The increasing reliance on AI is reshaping job roles. While automation eliminates certain positions, it also creates demand for AI specialists, data scientists, and engineers skilled in machine learning. Companies like OpenText are reinvesting in these areas, suggesting a shift in skill requirements.
2. Focus on Efficiency: The emphasis on flattening hierarchies and reducing middle management indicates a move toward leaner organizations. This could lead to more agile software development processes but may also strain remaining employees with increased workloads.
3. Global Workforce Dynamics: The layoffs highlight the interconnectedness of the global tech workforce. Indian professionals, whether in India or abroad, will need to adapt to a rapidly changing industry landscape, potentially relocating to emerging tech hubs or upskilling in high-demand areas.
4. Investor Pressure: The “herding effect” of layoffs, as described by experts, underscores the influence of Wall Street on tech companies. Firms are prioritizing short-term stock price gains over long-term employee retention, which could impact innovation and morale.

Conclusion

The June 2025 layoffs in the software industry reflect a complex interplay of technological, economic, and strategic factors. Companies like Microsoft, Google, and ZoomInfo, among others, have made difficult decisions to cut jobs, driven by AI adoption, economic pressures, and the need to streamline operations. For the Indian diaspora and the global tech workforce, these layoffs pose challenges but also opportunities to pivot toward emerging technologies like AI and cloud computing. As the industry continues to evolve, staying adaptable and skilled in high-demand areas will be crucial for software professionals worldwide.

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