The global tech industry is in the midst of one of its most turbulent years, with mass layoffs continuing to shake the sector. More than 2,02,000 employees have already lost their jobs in 2025, and according to a latest report the total could climb to 244,000 before the year ends. The data, compiled by personal finance and trading education firm RationalFX, shows that the majority of these layoffs are concentrated in U.S.-based companies, which account for nearly 70% of the total cuts.
The trend is being driven by a combination of cost-cutting measures, operational restructuring, and the rapid adoption of automation and artificial intelligence (AI). While these factors are reshaping how businesses operate, analysts suggest the changes represent a strategic rebalancing rather than wholesale human replacement by machines.
Among the biggest contributors to the layoffs is Intel, which plans to slash over 30,000 jobs this year, reducing its workforce from about 1.09 lakh to 75,000 employees. Amazon and Microsoft have also announced tens of thousands of job cuts as they streamline operations and reduce expenditure.
“American companies, in particular, seem to be doubling down on downsizing and cost-cutting efforts, letting go of more than 140 thousand employees not only in the United States but also in their offshore offices and manufacturing plants,” RationalFX said in the report, highlighting the fact that US-based company job cuts currently account for 69.71% of the 202,093 reported across the globe.
In India, Tata Consultancy Services (TCS) — the country’s largest IT services firm — has confirmed 12,000 layoffs, bringing the national total to over 17,000 job losses in the tech sector. In Japan, Panasonic has trimmed around 10,000 positions, equivalent to 4% of its global workforce, as part of its drive to improve profitability.
A significant 64,000 of this year’s layoffs are linked directly to AI and automation-driven restructuring. At Amazon, Senior Vice President Beth Galetti attributed around 14,000 job eliminations to AI-enabled changes in operations. Likewise, consulting giant Accenture reduced its headcount by 11,000, citing automation as a key factor.
According to the RationalFX report, these are the top 10 tech companies with the most layoffs since January 2025:
Intel (U.S.) – 33,900
Amazon (U.S.) – 19,555
Microsoft (U.S.) – 19,215
TCS (India) – 12,000
Accenture (Ireland) – 11,000
Panasonic (Japan) – 10,000
IBM (U.S.) – 9,000
Salesforce (U.S.) – 5,000
STMicro (Switzerland) – 5,000
Meta (U.S.) – 4,320
According to the report automation is happening “at the speed of light” in many companies and that unlike earlier times reskilling is not helping this time.
“Historically, when jobs have been at risk, companies have often turned to reskilling their workforce to mitigate the impact of potential layoffs. Some executives, such as TCS’s K. Krithivasan, however, say that redeployment and finding new positions for current employees simply to avoid layoffs do not work. Only time will tell whether tech companies will continue to focus on cost-cutting and downsizing throughout 2025, or whether advancements in AI will lead to the creation of new roles and opportunities in the technology market,” the report added.
The ongoing cuts underline the shifting priorities in tech — from rapid expansion to efficiency, automation, and adaptability — as companies brace for the next wave of technological transformation.