The technology sector is undergoing a seismic shift in 2025, with over 100,000 jobs lost across 218 companies worldwide, according to data from Layoffs.fyi, a website that tracks layoffs worldwide.
According to the portal, 112,732 tech employees worldwide had been laid off so far in 2025.
The wave of layoffs, spanning regions from Silicon Valley to Bengaluru, signals a new era for tech giants as they pivot towards artificial intelligence (AI), cloud services, and profitability after years of expansion fuelled by the pandemic.
Intel has executed the largest corporate workforce reduction this year, announcing layoffs of 24,000 employees, representing approximately 22 percent of its global workforce. This significant restructuring is part of the chipmaker’s aggressive strategy to regain its competitive footing against rivals Nvidia and AMD in the rapidly evolving semiconductor market. The cuts are widespread, affecting major facilities across the United States, Germany, Costa Rica, and Poland.
The Tech Titan Takedown: A strategic pivot to AI
The world’s leading technology firms are driving the contraction by aggressively redirecting capital toward the AI frontier. Microsoft has streamlined its workforce, shedding approximately 9,000 employees across multiple rounds this year, or about 4 percent of its total global workforce. These cuts have primarily targeted product and software units as the firm strategically reallocates resources toward AI and cloud innovation.
The trend extends across Silicon Valley, where Google and Meta have also implemented targeted reductions. Their actions focus on optimising spending and eliminating overlapping roles within their hardware, Android, and dedicated AI teams.
Oracle, a veteran in the enterprise space, has shed hundreds of staff in its U.S. offices as it accelerates its comprehensive transition to AI-driven cloud platforms. San Francisco-based Salesforce 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.
The restructuring wave is hitting major industrial and media sectors, driven by technology and cost optimisation. UPS is executing its largest-ever workforce reduction, cutting 48,000 jobs as it automates its logistics operations. Ford Motor Company plans to eliminate 8,000 to 13,000 positions to streamline its electric vehicle operations. Meanwhile, PwC is shedding 5,600 roles globally as it integrates AI tools into its tax and audit divisions. The media sector also saw significant cuts, with Paramount Global laying off 2,000 employees amid streaming losses.
India’s job story
The impact of this global technological restructuring is profoundly visible in India’s bellwether IT sector. Tata Consultancy Services (TCS) reported its steepest-ever quarterly decline in headcount, eliminating around 20,000 roles during the July–September 2025 quarter. This marked the company’s first significant workforce contraction since 2022, attributed largely to AI-led restructuring and an evolving skills mismatch in the labor pool.
This trend suggests a broader industry shift: major Indian IT firms are demonstrably slowing external recruitment as automation and AI tools diminish the demand for conventional mid-level technical positions.
While industry leaders emphasise the necessity of these tough decisions to secure future growth and profitability, the onus now falls on governments, educational institutions, and private enterprises to support displaced workers and cultivate new avenues of employment.
Ultimately, the current wave of layoffs may prove to be a defining moment—signaling not just a shift in corporate priorities, but a broader evolution in the very nature of work within the technology sector. As companies double down on AI and efficiency, the challenge ahead is to ensure that this technological leap forward is inclusive, sustainable, and shapes a future where both innovation and workforce resilience can thrive.