Why Business Behind Tech Job Cuts Goes Beyond Ai
The first half of the year 2025 is proving huge for the tech sector of the country. There is a period of retrenchment in companies and the biggest shock came when the country’s largest IT company Tata Consultancy Services (TCS) announced a trimming of 12,000 employees in one stroke.
This decision of TCS is not just a game of numbers, but it is also a clean and harsh message that now the way of working has changed completely and those who will not be able to get steps with this change, they will have to be ready to leave behind.
CEO of the company. Kritivasan clarified this big decision, saying, “We are completely changing the use of our operating models and technology. Especially new technologies like Artificial Intelligence (AI) have changed the nature of the work.”
He further said that the company has invested a lot in the redeelation of its employees, but there are some roles where re -deployment is no longer possible. So we had to take this decision, which was not easy, but it is necessary for the future.
Mid and senior level jobs are in danger
The trim of this time is completely different from the previous recession or covid. Earlier, where freshers, interns or frontline sales employees used to hit, now the saw is going on on the jobs of experienced mid and senior levels. Tech experts believe that AI has now been formed not only a backnd tool, but a corporate strategy which is rebuilding the entire functioning of the company.
Not only TCS, companies like Microsoft, Google, Metbook and Amazon are also constantly decreasing the number of employees. According to data from the Layoffs.fyi website, between January to July 2025, 169 tech companies have extracted about 80,000 employees and this figure is without inclusion of TCS.
The condition of big companies affected by AI
| Company | Layoffs associated with AI | CEO statement |
| Tcs | 12,000 (Projected) | Rediploom is necessary for AI skills, not easy decisions. |
| Microsoft | 15,000 | Enigma of success |
| Meta | 3,600 | Year of efficiency |
| Alphabet | 10,000 | Overhiring took place based on the previous growth estimate. |
| X (Twitter) | 80% employee | Work culture was to make extra hardcore. |
AI is taking place of humans
TCS may not have officially considered AI to be the reason for trimming, but the company has definitely accepted that the way of working has changed now. AI is now working ranging from coding to HR documents and email response. That is, the work that 10 people used to do, now they can do a software model in a few seconds.
Microsoft’s data suggests that his company now has 30% code AI generated. Similarly, CEO Mark Zuckerberg of Meta called it a ‘Year of Efficiency’. Google’s CEO Sundar Pichai admitted that the company had done excessive hiring in the last few years. At the same time, Alan Musk removed 80% of the employees from X (Twitter) and made it clear that now technology means less staff, more output.
- Crisis on jobs in microsoft
When and when have the biggest Leoffs ever been?
| Time round | How many jobs have gone every year? | Why did this happen? |
|---|---|---|
| Dot com of time (2000-02) | About 8 lakh people became unemployed | Internet companies have heavy investment without thinking, then bubble became bubble |
| Economic Recession (2008-09) | About 1.3 lakh people lost their jobs | Demand decreased around the world, business stopped |
| Corona period (2020– 22) | About 1.67 lakh people were trimmed | When the world opened again after epidemic, companies reduced staff |
| AI and Automation Round (2022- 25) | More than 5.41 lakh trimmed so far | Artificial Intelligence and Automation reduced the need for jobs |
Difficulties of tech companies are not just technology
AI is a big reason, but it is not alone. The economic front has also put pressure on big companies. Interest rates have increased in the US, the priority of investors has come out of ‘Hyper growth’ to ‘sustainable growth’. In such a situation, companies have started the path of cost cutting and automation.
The boom that came due to digital transformation after the epidemic forced companies to hire more than necessary people. But the demand has slowed down from 2023, and now it has become a ‘overhiring’ burden.
Excess engineers on more target
Bain & Co. A report of says that now the maximum threat from AI is to those mid-level tech employees who earn more than $ 200,000 (about Rs 1.6 crore) annually. Because their work is repetitive and data-based, which AI can do very easily. Now AI is being deployed everywhere from call center, HR support, customer email to cloud optimization.
No place in the system for those who are not bringing revenue
Companies are now resorting to strategies like ‘bench policy’. Under the new TCS policy, any employee should complete at least 225 billable days in a year, that is, at least so many days work on a project that will bring revenue. The bench period has also been reduced to 35 days. The gesture is clear, there is no place in the system for those who are not bringing revenue.
Also, companies are now spending crores of rupees behind high skill AI talent. Wall Street Journal report states that the top AI researcher is now being given salary like NBA players, being offered on package of up to $ 100 million.
Only new skills will save jobs
MCKINSEY says that generative AI can contribute up to about 4 trillion dollars to the world’s economy every year. But there is also a big concern with this, people who are left in the old job and are not learning the skills required for new work, they can slowly leave behind.
In the opinion of experts, in the coming times, the same people will be ahead who will keep updating their skills over time. The world of work is changing. Machines are doing a lot of machines, but the power of human thinking, understanding and making something new is far ahead of AI and this ability is going to be the most useful later.