Layoffs in 2025: What leadership got right and where they failed

Corporate layoffs have once again swept across industries this year so far, from tech to energy to professional services — raising questions not just about economic priorities, but also about how corporate leaders handle the human side of the crisis. While workforce reductions are often framed as strategic necessities in response to market shifts or technological realignment, the tone and behaviour of leadership during such transitions speak volumes about the corporate culture and accountability.

Take San Francisco-based Salesforce, for instance, the cloud computing giant eliminated over 1,000 roles in early 2025, citing the need to streamline and refocus on AI. CEO Marc Benioff issued an internal message that struck a familiar tone: high performance expectations, a leaner future, and an acknowledgment of the “difficult but necessary” nature of the step. However, it was criticised for the lack of personal engagement and vague communication about future roles.

In contrast, London-based PwC handled its layoffs — around 1,500 employees — with a tone of measured empathy. Leadership emphasised the decisions were made with “thoughtfulness and awareness,” offering a more respectful narrative that acknowledged the impact on people, not just profits.

Moreover, London-based British Petroleum and Washington-based Blue Origin followed different paths. BP’s message, about over 5% of the total workforce reduction, was blunt and cost-focused, evoking little emotional connection, while Blue Origin’s CEO Dave Limp delivered a pragmatic but optimistic message, framing the workforce reduction of 10% as part of a necessary reset for future success.

These differing approaches highlight that in a world of constant restructuring, the way leaders communicate change can either reinforce trust or deepen disillusionment. Let’s understand more about how others have behaved while announcing major layoffs this year. 

In May 2025, Washington-based Microsoft laid off about 6,000 employees (3% of its workforce) amid realignment toward AI-focused roles. Further, in July 2025, another wave of roughly 9,000 cuts was announced (about 4% of its workforce) across sales, Xbox, and global divisions.

CEO Satya Nadella’s leadership: The leadership has framed the layoffs as a strategic move to streamline operations and realign the company with its focus on AI and cloud computing. Nadella and Microsoft CFO Amy Hood have emphasised the need for "high-performing teams" and "agility", suggesting the cuts are part of a broader effort to reduce management layers and increase efficiency. 

Earlier, an email emphasised dignity, transparency, and support, including severance, healthcare, and career help. Nadella signed off personally, promising respectful treatment. However, many criticised the timing as cuts came amid record revenue and heavy AI investment (Azure, Copilot, AI savings of $500 Million). Its communications were professional and empathetic, however, public perception differed.

Japan-based Nissan is set to implement a major restructuring plan that includes significant job cuts this year. The company is set to lay off around 20,000 employees, representing about 15% of its workforce. It also has plans to close some of its global plants as part of a major restructuring.

CEO Ivan Espinosa’s leadership: Ivan Espinosa, the new CEO of Nissan, is tasked with leading the company through a period of strategic restructuring and financial recovery. His leadership would focus on revitalising Nissan's global strategy, restoring investor confidence, and navigating a rapidly evolving automotive landscape.

While the automaker has not yet released a full-year earnings forecast, citing the continued uncertainty surrounding global trade and the ongoing nature of its internal restructuring, leadership at Nissan is pushing for urgent action. Stabilising operations and ensuring long-term sustainable growth are top priorities amid rising costs, shifting global auto market, and increasing competitive pressures, according to the company.

Moreover, Espinosa portrayed the move as a sober response to reality, presenting a “Re:Nissan” turnaround plan aiming for profitability by 2026. Espinosa came across as candid and accountable — acknowledging past management mistakes and setting concrete recovery goals. 

The company proposed to cut 35,000 jobs by 2030 (with about 20,000 expected through voluntary measures) across its German operations. Earlier negotiations had threatened plant closures and 10% pay cuts.

CEO Thomas Schäfer’s leadership: Volkswagen leadership has defended the job cuts as necessary for cost-cutting and restructuring in the wake of economic pressures and the transition to EVs. While acknowledging the difficult decision, the leadership highlighted the need to remain competitive and ensure long-term sustainability. 

Schäfer has openly defended job cuts and plant closures as essential to achieving €4 Billion in savings, calling any half-measure “a band-aid” that would come back to bite. His tone has been direct and pressed on competitiveness, but seen as confrontational by unions. He set a three-four year restructuring timeline, rejecting earlier promises to avoid layoffs until 2030.

California-based Intel would be cutting 15-20% of its global workforce, with 529 jobs affected in Oregon and 110 in Austin, starting mid-July this year. These layoffs are part of a broader restructuring plan under new CEO Lip-Bu Tan, aimed at streamlining operations and reducing costs. The Oregon cuts would  impact facilities in Aloha and Hillsboro.

CEO Lip-Bu Tan’s leadership: The job cuts are framed as necessary “to eliminate organisational complexity, empower engineers, and enhance execution”. The leadership has offered a few weeks of pay and benefits, signaling a measure of support for impacted staff. 

The entire layoff episode has been presented as rational and strategic, yet follows personal leadership change (Tan replaced Gelsinger in March 2025).

In February 2025, Washington-based Starbucks initiated a restructuring plan, including the layoff of about 1,100 employees. This move, part of a broader strategy under new CEO Brian Niccol, aims to streamline operations and focus on core business functions. 

CEO Brian Niccol's leadership: The layoff decision has been described as a move of efficiency push in a competitive retail environment. While Niccol acknowledged the need for changes in an internal communication, there was no public message released. The CEO's involvement in the decision and its communication was limited, with a focus on internal messaging rather than public statements. There has been a sense of distancing between the leadership and the action.

In February 2025, California-based Meta announced to reduce its workforce by 5%, impacting roughly 3,600 employees. Later, it announced another round of 11,000 cuts (about 13%) in mid-2025. This move is part of a broader strategy to improve efficiency and performance, with layoffs targeting underperforming staff.  

CEO Mark Zuckerberg's leadership: He emphasised that 2025 will be an "intense year" for the company, necessitating a focus on high-performing employees. Affected employees will be notified and would receive severance packages similar to previous reductions, including 16 weeks of base pay plus additional weeks based on tenure. In an internal memo, he said: “I want to take accountability for these decisions… I’m especially sorry to those impacted.”