The U.S. tech sector is grappling with a wave of layoffs in 2024 and 2025, as companies adapt to economic pressures and shifting market dynamics. According to recent data from Crunchbase News, thousands of employees have been affected by job cuts across startups and established firms alike. Over 9,245 workers were laid off or scheduled for layoffs in the week ending July 9, 2025, alone.
Among the companies hit hardest are startups like Retrain.ai, a New York-based human resources firm that utilizes AI to match employers with talent. The company recently laid off 20 employees and ceased operations as it seeks to sell its technology. Founded in 2020, Retrain.ai had raised $34 million across four funding rounds, highlighting the challenges even well-funded startups face in the current climate.
Similarly, Klue, a Vancouver-based AI-powered competitive enablement platform, announced a significant reduction of its global workforce. The company cut approximately 40% of its staff in a bid to reorganize and prioritize an AI-first approach. While the exact number of U.S.-based employees affected remains unclear, the move underscores a broader trend of restructuring in the tech industry.
The layoffs are not limited to startups. Large tech firms and late-stage ventures have also been forced to downsize, with economic uncertainty and declining venture funding creating a challenging environment. As companies confront rising costs and a frosty investment market, many are reevaluating their operational strategies to remain competitive.
Industry analysts suggest that these layoffs may signal a long-term shift in the tech sector, with a focus on efficiency and sustainable growth over rapid expansion. While some firms pivot to emerging technologies like AI, others struggle to adapt, leading to tough decisions for both employers and employees.
For those affected by the layoffs, the road ahead may be uncertain, but opportunities for reskilling and transitioning to growing sectors remain. As the tech industry continues to evolve, staying informed about market trends and company developments will be crucial for navigating this turbulent period.
Alfred Lee
