The global technology industry is witnessing one of its most disruptive phases in decades. In 2025 alone, more than 1.2 lakh employees have lost their jobs as leading tech giants aggressively restructure operations, embrace artificial intelligence, and cut costs to remain competitive. From Silicon Valley to Bengaluru, the message from boardrooms is clear: AI is no longer an add-on — it is redefining the workforce itself.
Industry experts say this is not a temporary slowdown but a structural shift that will permanently alter how technology companies hire, deploy, and retain talent.
Intel tops the list with 24,000 layoffs
Semiconductor giant Intel Corporation has carried out the largest workforce reduction of the year, cutting nearly 24,000 jobs worldwide. The company said the move is part of a strategic transition toward a foundry-based business model, focused on advanced chip manufacturing for global partners.
Intel is increasingly relying on automation, AI-driven fabrication, and leaner operations to improve efficiency and reduce dependency on large manual teams. The layoffs mark one of the most significant restructuring exercises in the company’s history.
TCS cuts 20,000 jobs as AI delivery model takes over
India’s largest IT services company, Tata Consultancy Services (TCS), has trimmed its workforce by around 20,000 employees. The company cited skill mismatches caused by rapid adoption of generative AI and automation across client projects.
Traditional roles in application maintenance, testing, and support are shrinking as AI tools now handle tasks that once required large teams. TCS executives have made it clear that future hiring will prioritise AI, data engineering, and cloud-native skills.
Amazon, Verizon, Dell streamline operations
Amazon laid off nearly 14,000 corporate and administrative employees, aiming to flatten management layers and optimise costs amid slower growth in e-commerce and cloud spending.
Verizon cut 15,000 jobs, redirecting resources toward 5G expansion and digital services.
Dell Technologies eliminated about 12,000 roles, shifting focus to AI-ready hardware and enterprise solutions that require smaller, highly specialised teams.
Accenture, SAP, Microsoft follow suit
The restructuring trend has spread across consulting and software giants:
●Accenture reduced its workforce by 11,000, citing falling demand for traditional consulting and rising interest in AI-led transformation projects.
●SAP announced plans to cut 10,000 jobs as it accelerates its shift toward cloud-based and AI-powered enterprise platforms.
●Microsoft laid off nearly 9,000 employees, particularly in its gaming and Azure units, as it concentrates investment on long-term AI infrastructure.
Toshiba, Cisco signal post-restructuring era
Japanese conglomerate Toshiba cut around 5,000 jobs following its privatisation and internal reorganisation.
Cisco Systems reduced its workforce by 4,250, reallocating funds toward cybersecurity, AI networking, and automation technologies.
AI reshapes the definition of human capital
Analysts say 2025 marks the moment when AI shifted from being a productivity tool to becoming the core operating engine of tech companies.
“Where a hundred engineers were once needed, today a handful of specialists supported by AI systems can deliver the same output,” said a senior industry analyst. “This fundamentally changes how companies value human roles.”
What lies ahead
Experts warn that professionals who fail to reskill may face increasing uncertainty. However, the transition is also creating new opportunities in areas such as:
●Artificial intelligence and machine learning
●Data infrastructure and cloud architecture
●Cybersecurity and AI governance
The future, analysts say, will reward adaptability, continuous learning, and digital fluency.
