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Suzanne Blake

By Suzanne Blake

Reporter

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Several companies in the United States have already announced plans for mass layoffs in 2025, and certain industries and states are seeing a more substantial impact than others.

In California alone, nearly 100 companies have given notices of layoffs coming this year.

Why It Matters

High-profile companies like Meta have already started implementing mass layoffs for workers this year.

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While Meta is laying off nearly 4,000 employees to focus on building a larger machine learning team, 42 other companies have already laid off roughly 11,000 employees this year, according to layoffs.fyi.

In California, technology, retail and pharmaceutical companies appear to be taking on the bulk of the layoffs as employers look to reduce headcounts to manage costs. The layoffs could impact anywhere from 1 to 10 employees to as many as 1,000.

What To Know

Companies are required by law to give notice of mass layoffs ahead via the Worker Adjustment and Retraining Notification Act (WARN).

Based on data collected by WARNTracker.com, there are around 70 companies in California planning to lay off employees during 2025:

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What People Are Saying

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "California, being a hub for technological advancements, often sees early adoption of emerging technologies. This means that when industries shift, the state feels the impact first."

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "California's layoff picture for the first quarter of 2025 is a reflection of the headlines many employees are seeing nationwide. Some are coming from the retail space as less demand puts pressure on their respective workforces, while others are from the much-discussed Big Tech layoffs that have been the source of numerous headlines in recent weeks.

"The tech layoffs, in particular, are difficult, as not only are they higher income positions required for living in higher cost-of-living areas, but also the explanation for some of these cuts being carried out because of 'poor performance' could leave a bad impression on those employees' resumes going forward."

HR consultant Bryan Driscoll told Newsweek: "The WARN Tracker paints a grim picture for California, but also for the country as a whole. But let's be clear about these layoffs - they aren't an economic necessity. They're about corporate greed and short-term stockholder appeasement. Tech, entertainment, and retail are taking the biggest hits, with companies gutting workforces while raking in billions.

"It's the same tired playbook: squeeze employees, boost profits, and then act surprised when consumer spending tanks. I've said it for years: corporations cause recessions with these actions."

What Happens Next

Despite the high number of layoffs coming to California, Thompson said the state is still well-positioned to handle rapid changes in automation and artificial intelligence.

"For workers, upskilling is key. Instead of relying on traditional service-based roles, individuals should focus on developing skills that complement AI and automation, learning how to leverage these technologies to enhance their careers rather than being displaced by them," he said.

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