As of July 28, 2025, the tech sector is facing significant layoffs, with 94,000 jobs cut globally in the first half of the year. Companies like Microsoft, Intel, and TCS are reshaping their workforce as they transition to an AI-first model. While AI is often cited as a primary cause, industry leaders argue that factors like skill mismatches and economic pressures are equally influential. TCS, for instance, attributes its planned layoffs of 12,000 employees to evolving operational challenges, rather than solely to AI productivity gains.
Despite record profits, Microsoft has reduced its workforce by over 15,000, focusing on non-technical roles to align with long-term strategic goals in AI and cloud computing. Intel’s drastic cut of up to 24,000 jobs results from overestimated demand and the push for efficiency. Analysts suggest that AI is a catalyst for these changes, but broader restructuring is the driving force behind the layoffs.
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