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Technology Layoffs 2025: The global technology industry is undergoing major reforms. Over 94,000 high-tech workers lost their jobs in the first half of 2025
Technology Layoff 2025
Technology Layoff 2025: The global technology industry is undergoing major reforms. In the first half of 2025, more than 94,000 high-tech workers around the world lost their jobs, eliminating an average of around 507 roles per day, according to multiple reports. From Microsoft and Intel to Meta and TCS, companies are announcing massive layoffs to adapt to the more lean future of AI-first.
AI: A useful culprit?
Artificial intelligence is at the heart of this story. Executives such as Amazon CEO Andy Jassy have acknowledged that AI efficiency inevitably leads to a lean workforce. But others push back the notion that AI alone is driving work cuts.
For example, TCS CEO K Krithivasan recently told MoneyControl that its plans to cut 12,000 jobs are not to increase AI productivity, with around 2% of global personnel. Instead, he saw a limited feasibility of movement towards skill discrepancies and deployments, particularly among intermediate and advanced employees.
“This is not because AI gave us a 20% productivity boost. We're not doing that,” Krithivasan said, adding that the layoffs are part of a broader transformation that will make TCS a “prepared organization for the future.”
Despite pondering over 550,000 employees of AI and emerging technologies, not all staff can effectively migrate to TCS's evolving operational models. Many are trained in legacy systems and have found it difficult to fit into product-driven agile constructions.
Microsoft: Deeply cut despite record profits
Even if Microsoft hit a record high in the stock market, it has fired more than 15,000 employees so far this year. Cut focused primarily on non-technical roles such as sales and local support. In a note cited by The Economic Times, CEO Satya Nadella explained that it needs to be “aligned with long-term strategic goals” centered around AI, cloud and enterprise tools.
Microsoft is reportedly encouraging all employees to integrate Copilot AI tools into their daily workflows, and encourages them to improve performance metrics to include AI use. Traditional sales roles have been replaced by “solution engineers” trained in technical demonstrations and AI implementation.
Intel: Major reductions in employment of up to 24,000 people
Intel is also significantly reducing its workforce. It cuts up to 24,000 jobs or nearly 25% of global staff. New CEO Lip-Bu Tan confirmed in a revenue call that the company is overestimating demand and that automation has become necessary to increase efficiency. Intel has also stopped new projects in Germany and Poland, moved operations from Costa Rica to Vietnam, affecting another 2,000 roles.
Meta, Klarna, IBM: Open about AI displacement
Many companies are vague about the role of AI in reducing workforce, but some are more transparent. IBM has revealed that 200 hours of employment has been replaced by AI tools, and Klarna CEO Sebastian Siemiatkowski told CNBC that after adopting the AI system, the company has reduced its employees from 5,000 to 3,000 employees.
Meta also cut the workforce by 5% early in 2025 and cited an increase in automation as the main driver. The company's Reality Labs division, which is working on AR/VR technology, was one of the most affected.
Meanwhile, Panasonic announced 10,000 global layoffs, attributed the decision to a strategic shift towards AI-driven product development.
Cost Pressure and Rebuilding: A Real Driver?
Some analysts argue that AI is being used as a convenient scapegoat for a wider range of cost-saving and restructuring strategies. Jason Leverant, president of ATWork Group, told CNBC:
“Being direct about AI displacement causes a backlash from employees and regulators,” said Christine Inge, workforce strategist at Harvard University.
She noted that while AI is accelerating the shift, the slowdown in the economy, changing client expectations and skills gaps are equally responsible. “Unemployment is going to be very big. The only thing that can be done as an individual is to adapt,” Inge told CNBC.
Not only AI, but AI is a catalyst
Whether it's TCS, Microsoft, or Intel, the 2025 layoffs are clearly part of a deep transformation. AI is undoubtedly a catalyst, streamlining operations, reduced redundancy, and reshaping business models, but that's not the only cause.
Instead, the combination of automation, cost pressures, macro uncertainty, and the need for organizational agility drives a global wave of technology layoffs.
Aparna Deb is a sub-editor and writes for Business Vertical at News18.com. She has a nose of important news. She is curious and interested in things. In particular, financial markets, the economy…read more
Aparna Deb is a sub-editor and writes for Business Vertical at News18.com. She has a nose of important news. She is curious and interested in things. In particular, financial markets, the economy… read more
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