US Tech Giants Spend $2.7 Billion on Severance as AI Rebalancing Drives Deep Layoffs
Updated
Updated · Business Insider · Jul 1
US Tech Giants Spend $2.7 Billion on Severance as AI Rebalancing Drives Deep Layoffs
2 articles · Updated · Business Insider · Jul 1
Summary
Amazon disclosed the biggest severance bill among reviewed US tech groups, estimating $2.7 billion through 2025, including $1.8 billion booked in the third quarter of last year.
Those costs reflect broad restructuring as companies cut pandemic-era hiring and redirect spending toward AI, cloud infrastructure and higher-margin businesses.
Intel and Oracle each reported about $1.8 billion in severance-related costs: Intel cut more than 25,000 jobs in 2025, while Oracle's head count fell by 21,000 over the year.
Dell logged $569 million and Cisco $617 million in severance charges as both shifted resources, while AMD and Micron reported far smaller costs of $79 million and $30 million.
Disclosure was uneven across Big Tech: among the Magnificent Seven, only Amazon broke out severance costs clearly, leaving the broader layoff bill across the sector likely understated.