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Q3 2025 Tech Layoffs Update

Written by Alten Capital | October 9, 2025

At Alten Capital, we continue to monitor global technology talent markets to identify relevant industry dynamics. We keep an eye on these metrics, moreover, with AI’s progress and the perceived impact AI can have on software engineering productivity.

Layoffs.fyi (https://layoffs.fyi/) has been compiling data on tech layoffs since COVID, and the portal offers a consolidated view of this info. During Q3 2025, we saw one of the lowest readings in the last three years (~70 companies announcing tech layoffs and approximately 26,000 affected employees).

The trend continues to decrease with a perceived stabilization at the current levels, when we look at the quarterly data.

There is no particular seasonality in these readings, with the monthly data, of course, showing higher volatility.

AI progress in tech is expected to impact technology professionals’ productivity. Software engineers can be more productive with the use of AI code generation tools. We are not yet seeing AI impact in the tech talent market (potentially a net effect between hiring and firing that does not move the needle at this time).

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