80,000+ tech layoffs in 2025—How much is AI to blame?
What's the story
Several global technology companies, including Tata Consultancy Services (TCS), Microsoft, Intel, Meta, and Panasonic, are laying off thousands of employees this year. The move comes as these firms adjust to changing business needs and the growing influence of artificial intelligence (AI). While some companies cite efficiency and restructuring as reasons for the layoffs, others like TCS attribute them to internal challenges such as skill mismatches. So far in 2025, over 80,000 tech workers have been laid off, as per layoffs.fyi.
TCS layoffs
TCS cuts 12,000 jobs
India's largest IT company, TCS, is cutting its global workforce by about 2%. This could affect some 12,000 employees. However, the company stresses that this isn't due to AI-driven productivity gains. TCS CEO K Krithivasan said in an interview with Moneycontrol that the layoffs are due to limited options for redeploying employees who don't fit current project requirements.
Microsoft layoffs
Microsoft lays off 17,000 employees
Microsoft has also laid off over 15,000 employees this year. An additional 2,000 workers labeled as underperformers have also left the company. CEO Satya Nadella described the layoffs as part of a strategic realignment toward AI priorities, calling it an "enigma of success." While AI automation is accelerating, Microsoft's layoffs also reflect a broader reorganization of roles as the company shifts investment from legacy teams to AI-focused initiatives. Financially, the company is seeing a good time.
Intel layoffs
Intel to cut 24,000 jobs
Intel plans to cut its workforce by some 24,000 employees—about a quarter of its total staff. The decision was announced during the company's quarterly earnings update. At Intel, the layoffs are less about AI transition and more rooted in deeper structural issues. The company has struggled to compete with NVIDIA and AMD in the AI chip market, and delays in innovation and product execution have led to cost cuts, including workforce reductions and canceled projects.
Other layoffs
Meta's job cuts are part of 'Year of efficiency' campaign
Meta has also announced fresh job cuts in its Reality Labs division, which looks after its VR and AR products. At Meta, job cuts are part of its "Year of efficiency" campaign, with AI playing both a disruptive and strategic role. The company is consolidating middle management and redeploying resources toward generative AI and metaverse infrastructure, resulting in role redundancies.
Panasonic restructuring
Panasonic to cut 10,000 jobs
Japanese tech giant Panasonic has also announced plans to cut 10,000 jobs. The move is centered around weak performance in its consumer electronics division and increased global competition, not directly due to AI automation. However, the company has acknowledged a gradual pivot to AI and EV-related tech, which may reshape its workforce over time.