AI Drives Change in Tech Companies
Tech Layoffs 2025: HP, Grubhub, Autodesk Slash Jobs in Latest Industry Shifts
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Edited By
Mackenzie Ferguson
AI Tools Researcher & Implementation Consultant
In February 2025, major tech companies like HP, Grubhub, and Autodesk have announced significant layoffs as they restructure and prioritize AI investments. HP plans to cut up to 2,000 jobs to save $300 million, Grubhub laid off 20% of its workforce post-acquisition, and Autodesk is reshaping its organization for greater AI focus. Meanwhile, Ibotta and HerMD are reducing their workforce by 8% and shuttering entirely, respectively, marking a wave of job losses significantly lower than previous years.
Introduction: Wave of Tech Layoffs in February 2025
February 2025 has marked a significant turning point for the tech industry with a wave of layoffs that has left thousands of employees grappling with uncertainty. Notable companies such as HP, Grubhub, and Autodesk have initiated significant workforce reductions as part of broader restructuring and strategic refocusing efforts. As the month drew to a close, HP announced its decision to cut 1,000-2,000 jobs, aligning with its "Future Now" restructuring plan aimed at $300 million in cost savings by the end of fiscal year 2025. Similarly, Grubhub, after being acquired by Winder, opted to lay off 500 employees, accounting for more than 20% of its workforce, while Autodesk decided to terminate 1,350 positions as part of their strategy to reshape their Go-to-Market organization and increase investments in AI.
HP's Restructuring Strategy and Layoffs
HP's recent decision to lay off between 1,000 and 2,000 employees marks a significant move within the company's broader restructuring agenda, aptly named the "Future Now" plan. This initiative is being driven by a need to streamline operations and realize an anticipated $300 million in savings by the end of fiscal 2025. This bold step reflects HP's strategic response to the ongoing challenges in the tech industry, particularly those tied to cost pressures and competition [][].
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Layoffs at HP are not merely about cutting numbers but are emblematic of broader industry trends where technological advancements and the integration of artificial intelligence are reshaping the workforce landscape. As companies, including HP, continue to embrace AI and other emerging technologies, they face the dual challenge of managing operational costs while investing heavily in innovation. This restructuring aims not only to stabilize HP's financial outlook but also to position the company for future growth in an increasingly AI-driven market [].
Public reaction to HP's layoffs has been mixed, with social media platforms and forums like Reddit buzzing with concerns over the implications for the affected employees. The discussion has predominantly centered around the long-term impacts of such restructuring activities, especially in terms of job security and the broader social consequences. While some view these measures as necessary for competitive advantage and technological progression, others express anxiety over job displacement and the consequent hardships for families [][].
The ramifications of HP's restructuring do not only pertain to immediate job losses but also signal a shift in workforce requirements towards more technologically adept roles. As the company maneuvers through these layoffs, there is a growing emphasis on reskilling and upscaling initiatives to prepare the workforce for future demands focusing on AI, cybersecurity, and cloud services. This pivot is crucial for maintaining not only HP's market relevance but also its ability to drive innovation in a competitive landscape [].
Grubhub's Post-Acquisition Workforce Reduction
Grubhub's recent workforce reduction is a significant move following its acquisition by Winder in November 2024. The company laid off 500 employees, which amounts to more than 20% of its entire workforce. This sizable reduction signals a strategic restructuring under the new ownership, likely aimed at aligning operational costs with business objectives post-acquisition. The decision highlights the ongoing challenges within the food delivery sector, where companies must constantly adapt to shifting consumer preferences and intense competition. For more details on these industry trends, see the Fast Company news report .
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The layoffs at Grubhub have stirred discussions among industry analysts and the public regarding the strategic vision and long-term sustainability of the company under Winder's leadership. These layoffs, while substantial, might be part of broader efforts to streamline operations and invest in technology and market expansion strategies that are more attuned to the current economic climate. Additionally, integrating the workforce and operational frameworks between Grubhub and Winder could require trimming down to eliminate redundancies and focus on core competitive areas. Read more about the wider context of tech layoffs in the recent update provided by Fast Company .
Strategic Shifts Behind Autodesk's Job Cuts
In February 2025, Autodesk's significant decision to cut 9% of its workforce, equivalent to 1,350 jobs, marks a critical shift in its strategic focus. This move is driven primarily by the company's ambition to reshape its Go-to-Market organization and bolster its commitment to emerging technologies like artificial intelligence and cloud services. By redirecting resources towards these high-potential areas, Autodesk aims to maintain its competitive edge in a rapidly evolving market. The decision, although difficult, aligns with broader industry trends where companies increasingly pivot towards AI and digital transformation to drive future growth. For more insights, visit this article.
The layoffs at Autodesk are not just a reaction to immediate economic pressures but also part of a longer-term vision to realign the company’s operational structure with its strategic goals. Investing in artificial intelligence, cloud, and platform technologies is expected to unlock new efficiencies and enable Autodesk to innovate more effectively. This strategic shift is a proactive measure intended to ensure that the company's offerings remain relevant and compelling in a tech landscape where AI-driven solutions are becoming increasingly integral. This approach underscores Autodesk’s commitment to sustainable growth through innovation, even amidst challenging market conditions. Additional details can be found here.
The restructuring at Autodesk reflects a broader movement within the tech industry towards adopting more agile operational frameworks that emphasize innovation and digital capabilities. The decision to reduce the workforce is aligned with Autodesk's focus on scaling AI initiatives, which are poised to play a crucial role in transforming how the company delivers value to its clients. By streamlining operations, Autodesk plans to leverage technological advancements to enhance productivity and create more integrated design and engineering solutions. This strategic realignment, though impactful on employees, is crucial for positioning Autodesk as a leader in the digital transformation space. For a comprehensive overview, read more here.
The decision by Autodesk to lay off a significant portion of its workforce has evoked mixed reactions from both industry experts and the public. While some stakeholders see it as a necessary step to future-proof the company, others express concerns over job displacement and the adequacy of reskilling opportunities for affected employees. The focus on AI and cloud technologies is part of a broader strategy to ensure Autodesk's long-term relevance and competitiveness. However, these changes highlight the need for robust workforce transition programs to support employees as they navigate these transformative shifts. To explore these dynamics further, click here.
Ibotta's Workforce Realignment: Reasons and Reactions
In the wake of a challenging fiscal environment, Ibotta has recently made the difficult decision to realign their workforce, cutting 8% of their employees, which translates to around 70 jobs. This strategic shift underscores Ibotta's need to prioritize certain business operations while aligning resources effectively, as reported by Fast Company. This move was part of a broader industry trend, where companies are revisiting their workforce compositions to better respond to market demands and economic pressures.
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Employee reactions have ranged from understanding to concern. Ibotta's strategic realignment reflects a calculated effort to secure the company's future success amidst fluctuating market conditions. However, as with any layoffs, there are significant human impacts, and the affected employees face uncertainties and challenges that come with job loss. Despite these challenges, Ibotta's leadership emphasized that these changes were necessary to align with their long-term business goals and priorities, highlighting a common theme across the tech industry of balancing innovation with cost efficiency.
The layoff announcement at Ibotta has sparked mixed reactions from industry analysts and the public. While some understand the necessity behind the realignment as a business strategy, concerns remain about the broader implications of such decisions. The tech industry has seen several companies, including HP, Grubhub, and Autodesk, making similar choices, as reported here. For Ibotta, this move may help navigate the current economic landscape, but it also prompts questions about support for laid-off employees and the company's future growth prospects.
Closure of HerMD: Challenges in Women's Health Sector
The sudden closure of HerMD, a women's health startup, highlights significant challenges within the women's health sector. The company, which was known for providing specialized healthcare services to women, cited 'ongoing challenges in healthcare' as a primary reason for its shutdown. This closure points to a broader issue within the women's health industry: the difficulty in maintaining quality care amidst an evolving landscape of healthcare demands and economic pressures, as reported in a recent article by Fast Company (Fast Company). HerMD's shutdown not only resulted in the loss of jobs but also in a gap in services that were crucial for women seeking specialized care. The closure reflects a growing concern about the viability of women's health initiatives in a sector that is increasingly dominated by cost-cutting measures and economic constraints.
Women-led healthcare initiatives like HerMD face unique hurdles that are not as prevalent in traditional healthcare sectors. Factors such as limited funding, niche market focus, and the challenge of operating in an industry that has historically underserved women's health may contribute to their vulnerability. The shutdown of HerMD, as discussed on Fast Company (Fast Company), underscores the need for more robust support systems and financial models that can sustain such essential services. Efforts to improve women's health must navigate these challenges while striving for innovation and sustainability in their operations.
The overall economic climate further exacerbates the struggles faced by companies like HerMD. With tech layoffs reaching significant numbers, as seen in the broader industry trends (Fast Company), healthcare startups must contend with both industry-specific and macroeconomic challenges. The financial instability that accompanies widespread job cuts affects consumer spending patterns, which in turn can impact healthcare businesses reliant on discretionary healthcare spending. HerMD's closure is a sobering indicator of these compounding challenges and highlights a pivotal moment for reassessing support and investment in women's healthcare services.
Comparative Analysis of Tech Layoffs: 2023-2025 Trends
The period between 2023 and 2025 witnessed a dynamic shift in the tech industry's approach to workforce management, marked by significant layoffs that reflected broader economic, technological, and organizational trends. By 2025, the total number of tech layoffs was notably reduced compared to the preceding years, with 18,397 job cuts occurring across 75 companies. In contrast, the industry experienced a much higher peak in layoffs in 2023, with 264,220 job losses, followed by 152,472 in 2024. These figures not only highlight a notable downtrend in the number of layoffs but also signal a potential stabilization or strategic restructuring within tech companies as they tackle economic headwinds and advance their technological capabilities.
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In 2025, several renowned tech firms undertook workforce reductions as part of structural overhauls or strategic pivoting efforts. For instance, HP initiated layoffs of 1,000 to 2,000 employees as part of its ongoing 'Future Now' restructuring plan, aiming for $300 million in cost savings by the fiscal year's end . This move was in line with broader industry trends of streamlining operations to cope with economic pressures.
Autodesk, another tech giant, cut 1,350 jobs, equivalent to 9% of its workforce, amidst its transition towards bolstering its AI capabilities and revamping its Go-to-Market strategies . Similarly, Grubhub's decision to lay off 500 employees, over 20% of its workforce, followed its acquisition by the food delivery startup, Winder, indicating a common trend of post-acquisition restructuring in the tech landscape.
In stark contrast to the large-scale layoffs of big firms, the shutdown of smaller companies like HerMD, which resulted in the complete layoff of all its employees, underscored challenges specific to startups, particularly those in niche markets like women's health. HerMD attributed its closure to unrelenting challenges in the healthcare sector, highlighting the vulnerabilities that specialized tech companies face . These closures emphasize the broader economic strains and sector-specific hurdles that tech firms must navigate in the coming years.
Public reactions to the layoffs have been mixed, with debates focusing on the implications of such job cuts for the future landscape of work. Many express concern about the long-term impacts of AI integration and restructuring on job security. There is a growing discourse on the need for reskilling and education in emerging tech areas, which could help mitigate the impact of these industrial shifts and prepare the workforce for new challenges and opportunities in the tech sector .
Public Reactions to the February 2025 Layoffs
The public reactions to the tech layoffs in late February 2025 were a mixed bag of shock, sympathy, and speculation. On platforms such as Reddit and various online forums, the anxiety about the long-term implications of such massive restructurings was palpable. Particularly, the layoffs by HP spurred intense debates about the future trajectory of technology companies investing in artificial intelligence at the expense of their human workforce. While some argued that AI investments promise future innovation and efficiency gains, others worried about the immediate repercussions such as unemployment and its cascading effects on families and communities [source].
Concerns were especially pronounced regarding Grubhub's layoffs following its acquisition by Winder, as it sparked discussions over corporate accountability and employee welfare. The tech community, long accustomed to growth booms and robust hiring, found itself grappling with sudden contractions and the increased vulnerability of workers [source]. Meanwhile, Autodesk's move to reshape its workforce to align with AI advancements generated mixed reactions. Some professionals accepted the shift as an inevitable step towards technological progress, while others expressed a need for more comprehensive reskilling programs to mitigate the impact on displaced workers [source].
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Ibotta and HerMD's decisions also faced scrutiny, albeit to a lesser degree. While discussions around Ibotta focused on the resilience needed in a volatile market, HerMD's complete shutdown elicited concern and regret regarding the availability of women's health services. This latter incident highlighted the broader implications of business decisions on societal needs beyond simple employment statistics [source]. The public expressions of empathy for displaced employees underscored the need for companies to balance technological adoption with human-oriented policies, ensuring that innovation does not come at the cost of the well-being of their workforce.
Economic, Social, and Political Implications of the Layoffs
The wave of layoffs in the tech sector during the early months of 2025 has sent ripples across economic, social, and political landscapes. Economically, the reduction in workforce by giants like HP, Grubhub, Autodesk, and others, has led to concerns over decreased consumer spending. Economists predict that such substantial job losses will likely result in a more cautious investment climate. Furthermore, as the tech industry undergoes a shift towards artificial intelligence and automation, there's a pressing need for investments in reskilling initiatives to bridge the skills gap and prepare the current workforce for the demands of the future. For a detailed look at these developments, see FastCompany.
Socially, the impact of these layoffs is profound, with increased financial instability straining community support structures. As families face economic hardships, there's a growing need for mental health support for affected individuals. Moreover, the potential compromise of Diversity, Equity, and Inclusion (DEI) initiatives due to cost-cutting measures is alarming. The widening digital divide threatens to exacerbate income inequalities, as access to technology becomes a determinant of economic mobility. Insights into these social challenges can be found here.
Politically, the layoffs are sparking debates and calls for stronger labor protections and government interventions. As the tech industry pivots towards AI and more automation, there's increasing pressure for governments to establish and support retraining programs that focus on emerging tech fields. Additionally, the layoffs have placed executive compensation and corporate governance practices under heightened scrutiny, prompting discussions about fairness and accountability in corporate structures. For further analysis on the political implications, visit OpenTools.
In summary, the layoffs are more than just an economic event; they are a multifaceted challenge affecting various aspects of society. From economic downturns and social strains to political debates and corporate restructuring, the implications are vast. The movement towards AI and automation continues to redefine job security and workforce requirements, driving the need for ongoing learning and adaptation. To understand the broader context, exploration of these dynamics is crucial as we navigate this transformative period in the tech industry. For more information, refer to reports on OpenTools.
Impact of AI Integration on Workforce Dynamics
Public sentiment regarding AI integration and subsequent workforce changes is mixed. While AI's potential to drive economic growth and enhance business capabilities is widely recognized, there are also concerns about job displacement and income inequality. The tech industry's recent layoffs have sparked debates about the ethical considerations of AI adoption, as well as the importance of corporate responsibility in ensuring smooth transitions for displaced workers C href='https://www.reddit.com/r/Layoffs/' target='_blank'>RedditC/a>.
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As AI continues to shape the future of work, it becomes crucial for companies to balance technological progress with human-centric policies. This involves investing in workforce training and development, promoting diversity and inclusion, and fostering an environment where both innovation and job security coexist. Ultimately, the success of AI integration will depend on how well organizations manage these combined challenges and opportunities.
Future Outlook: Skilled Workforce and Job Security in Tech Industry
As the tech industry continues to navigate a landscape of rapid innovation and economic shifts, the outlook for the skilled workforce and job security remains intricate and evolving. Despite the tech layoffs witnessed in early 2025 across companies like HP, Grubhub, and Autodesk, the demand for skilled talent persists, particularly in emerging fields such as artificial intelligence, cloud computing, and cybersecurity. These sectors are not only redefining traditional job roles but also necessitating a workforce equipped with a robust set of technical skills and adaptability. In fact, the push towards AI integration by firms like Autodesk highlights the critical need for professionals who can navigate these new technologies .
The evolving tech workforce landscape underscores the importance of continuous learning and upskilling as key components of job security. Even as layoffs create temporary setbacks, the broader industry trend leans towards reskilling initiatives to meet the skills mismatch presented by technological advancements. For instance, companies reducing their workforce, like Ibotta, are often realigning business priorities . This aligns with a growing call for educational and professional programs that emphasize lifelong learning and adaptability to shifting market demands, ensuring that employees remain relevant in a competitive job market.
Furthermore, the social and economic implications of tech layoffs highlight the critical role of skilled professionals in sustaining industry growth and stability. As industries increasingly automate and integrate AI, there is a simultaneous requirement for human oversight, innovation, and ethical governance. This balancing act reaffirms the need for a diversified skill set that merges technical prowess with strategic, interpersonal, and ethical competencies. Hence, while job security may appear tenuous in the face of restructuring and automation, opportunities abound for those who can align their skills with the futuristic demands of the tech industry.
Looking ahead, the intersection of skilled workforce development and job security within tech will likely influence broader economic and social patterns. Governments, educational institutions, and corporations are all stakeholders in cultivating a workforce that not only meets current technological needs but can also anticipate future trends. By addressing the skills gap and investing in human capital, these entities can help ensure a resilient and adaptable workforce that fortifies the industry against potential disruptions, thereby stabilizing the broader market and societal framework.
Conclusion: Balancing Innovation and Workforce Stability
In an era where technological advancement is both inevitable and necessary, it remains critical to balance innovation with workforce stability. The layoffs reported in early 2025, involving major players like HP and Autodesk, underscore the challenges of achieving this equilibrium. HP's decision to lay off 1,000-2,000 employees as part of its 'Future Now' restructuring plan illustrates the complex interplay between cost-cutting measures and the need to invest in forward-looking technology such as artificial intelligence .
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Similarly, Autodesk's strategic alignment with AI investment leads to workforce reductions, raising concerns about job displacement even as it promises future growth and technological leadership . These examples highlight the tension between adopting cutting-edge technologies and maintaining employment levels, a struggle that is seen across the tech industry. Even though job losses in 2025 are significantly lower compared to previous years, they reflect a cautious approach by companies to remain competitive .
As companies increasingly look towards AI for efficiency and innovation, the broader implications for workforce stability cannot be ignored. Investment in upskilling and reskilling initiatives becomes crucial to prepare the workforce for the changing landscape, ensuring that economic growth does not come at the cost of job security . The economic, social, and political ramifications of these changes underscore the importance of balancing technological innovation with human capital development.
Public sentiment remains wary of the rapid changes within the tech industry, with concerns over job security and the impact of AI on the workforce rewriting the narrative of innovation . To maintain stability, it is essential for businesses to foster transparency in their strategies and invest in their human resources as much as they do in new technologies. Only then can the threat of technological unemployment be mitigated, allowing innovation to coexist with a thriving workforce.