New Delhi: The numbers don’t lie. More than 94,000 tech workers across the globe have lost their jobs in the first half of 2025 alone. That’s an average of over 500 people getting sacked every single day. Microsoft, Intel, Meta, Salesforce, TCS, Panasonic, the list keeps growing. Some companies blame internal restructuring, others say it’s about performance or cost pressure. But the timing can’t be ignored. Almost all of them are investing billions in artificial intelligence.
As companies double down on AI tools, cloud platforms, and digital infrastructure, many are quietly trimming jobs in areas like middle management, hardware operations, and traditional software development. It’s not always openly linked to AI. But the pattern is hard to miss.
AI is apparently not the reason, but it’s changing everything
Tata Consultancy Services (TCS) has cut around 2 percent of its global workforce. That could affect up to 12,000 employees. In a recent interview with Moneycontrol, TCS CEO K Krithivasan said the job cuts were not driven by AI productivity gains but were happening because of a “skill mismatch”.
“We are still hiring and training people, but in some cases, redeployment is not possible,” Krithivasan said. He explained that while over 5.5 lakh TCS employees had been trained in basic digital skills and nearly 1 lakh in advanced technologies, many mid and senior-level professionals found it difficult to move beyond initial training. “Some roles are hard to place,” he admitted.
This situation is playing out at a time when Indian IT firms are under pressure to evolve. Clients want faster delivery, newer tech, and lower costs. Many of these demands are being met through AI automation and smarter tools, reducing the need for large teams.
Microsoft cuts 15,000 jobs despite strong profits
Microsoft has been riding high with a 21 percent jump in its stock this year and over $75 billion in net income across three quarters. Still, it has laid off more than 15,000 workers in 2025. Around 2,000 others left after being marked as “underperformers”.
In a memo to employees, CEO Satya Nadella addressed the emotional toll. “These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with – our colleagues, teammates, and friends,” he wrote. Nadella acknowledged the “uncertainty and seeming incongruence” of firing people while profits soar but said restructuring was needed as the company continues investing close to $80 billion into AI infrastructure.
Intel axes 24,000 jobs and cancels global projects
Intel’s job cuts are some of the deepest this year. The company is letting go of nearly a quarter of its global workforce — around 24,000 people. That’s a serious move. Intel’s new CEO Lip-Bu Tan, during a recent earnings update, said the company had “overbuilt in areas where demand didn’t materialise.”
In response, Intel is scrapping factory plans in Germany and Poland. Around 2,000 jobs are also getting shifted from Costa Rica to Vietnam. It’s clear that the chip giant is making a sharp pivot, pulling back from legacy operations and focusing on newer, leaner areas.
Meta and Panasonic follow with their own cuts
Meta, too, has trimmed roles, especially in its Reality Labs division, which handles its VR and AR offerings. This includes teams behind products like the Quest headset and Supernatural fitness app. Meta didn’t disclose exact numbers but said it was streamlining for “future mixed reality experiences”. Earlier this year, the company had already axed 5 percent of its workforce, targeting underperformance.
Panasonic is another big name scaling down. The Japanese electronics company plans to cut around 10,000 jobs, half in Japan, the rest abroad. CEO Yuki Kusumi said the decision was part of a shift away from slower product segments like TVs and some industrial gear. He said the company will now focus on emerging tech such as AI.
The writing on the wall
Even though companies like TCS insist AI isn’t the direct cause of layoffs, it’s playing a huge role behind the scenes. Here’s what’s happening across many of these firms:
- They’re investing heavily in AI tools, infrastructure, and automation.
- They’re quietly letting go of employees who can’t keep up with new tech demands.
- They’re pruning middle layers of management and traditional developer roles.
The big firms may not always say it out loud, but AI is reshaping how they work, and who they want to keep.