What Type of Tech Jobs Are Being Laid Off in 2025?

If you're working in the tech industry or planning to break into it, you may be wondering: what type of tech jobs are being laid off this year? With headlines about ongoing cuts across major companies like Microsoft, IBM, and Intel, it's a valid and urgent question. By May 2025, tech companies around the globe had laid off 61,000+ employees.

While Australia’s tech scene remains strong overall, there’s a clear shift in which roles are at risk and which ones are becoming essential. In this article, we break down the latest layoff trends, the roles most affected in 2025, and what you can do to stay competitive in a changing market.

Why Are Tech Layoffs Still Happening?

Globally, tech companies are navigating a post-boom correction. Many overhired during the pandemic and early AI surge. In 2025, we’re seeing strategic restructuring, not collapse. The focus is now on leaner teams, automation, and AI-led operations.

Australia isn’t immune to these shifts. While we haven’t seen cuts on the same scale as the U.S., local teams in multinational firms and homegrown tech companies are reassessing their hiring priorities. The key theme is that roles that don’t directly contribute to product delivery, automation, or strategic innovation are being trimmed.

So, What Type of Tech Jobs Are Being Laid Off?

1. Mid-Level Software Engineers (Without AI or Cloud Skills)

Generalist developers, especially those focused on maintaining legacy systems, are increasingly vulnerable. Employers are prioritising engineers who can contribute to AI-enabled features, cloud-native environments, and automation workflows.

2. Traditional Product & Project Managers

Tech companies in Australia are streamlining leadership layers. If you're in a product or project management role that lacks strong technical fluency or hands-on involvement in delivery, you're more likely to be affected.

3. Sales & Marketing Roles in SaaS Without Technical Depth

In B2B SaaS, sales professionals without a technical edge (like solution engineering or product demo skills) are being replaced or consolidated. Tools powered by AI are taking over lower-value lead generation and client engagement tasks.

4. IT Support, QA Testing & Manual Operations Roles

Thanks to AI-led testing, self-healing infrastructure, and cloud-based deployment tools, companies are cutting back on manual testing and traditional IT support roles. Many are moving toward DevOps and SRE roles with broader automation capabilities.

Australia-Specific Trends: What We're Seeing Locally

• Startup layoffs have affected frontend engineers and content-heavy growth teams

• Government tech initiatives continue to hire, but favour contractors and hybrid-skilled professionals

• Cloud transformation projects are driving demand for security and data engineers, but pushing out roles tied to legacy systems.

In short, companies aren’t cutting tech roles randomly; they’re rebalancing towards future-facing skills.

How to Stay Relevant in a Changing Tech Market

Build Skills in AI, Data, or DevOps

The most in-demand roles involve automation, data integration, and scalable system design. Whether you're a developer or a product person, upskilling in AI, MLOps, or cloud infrastructure can make a real difference.

Frame Your Experience for Business Value

Tech layoffs aren’t just about skills; they're also about outcomes. If you can connect your work to cost savings, revenue growth, or strategic priorities, you're more likely to stay off the chopping block.

Practice for Pivot-Friendly Interviews

Even if you're not in a high-risk role, it's smart to prepare for the possibility of change. Practicing interviews, especially with mentors who understand the current market, as they can help you reposition with confidence.

How Emergi Mentors Can Help

If you’re navigating career uncertainty or worried your role might be next, a mentor can offer clarity. At Emergi Mentors, we offer mock interview service, career strategy sessions, and skills-based mentoring to help professionals in Australia stay ahead of the curve.

Our mentors are working tech professionals who understand the current hiring climate. Whether you want to move into AI, data analytics, or product-led roles, we’ll help you map a realistic and competitive path forward.

Conclusion: Adaptability Is Your Competitive Edge

If you’re asking “What type of tech jobs are being laid off?” you’re already thinking ahead, and that’s a strength. The job market isn’t collapsing, but it is evolving. Knowing where the risks are and where the growth is helps you take control of your career.

Don’t wait for a restructure to make a move. Upskill, prepare, and get strategic about where you’re heading next.

Book a strategy session with a tech mentor at Emergi Mentors and plan your next career move with confidence.