By Sulagna Halder
3 July 2025:
In 2025, there were over a lakh job losses in the global technology sector, affecting major corporations like Microsoft, IBM, Intel, Google, Amazon, Meta, and Infosys. Experts in the field blame the mass layoffs on a confluence of declining profits, unstable global economies, and the quick transition to automation and artificial intelligence (AI).
Microsoft spearheaded the most recent round of layoffs, firing almost 9,000 employees in June, mostly from middle management, the Xbox, and sales teams. This is the company's third round of layoffs this year, bringing the total to over fifteen thousand. According to the company, the change is a part of a strategic realignment to concentrate more on cloud computing services and generative AI.
Intel has also experienced significant reorganization under CEO Pat Gelsinger. Up to 195 workers at the semiconductor giant's Kildare, Ireland, facility have received redundancy notices as it closes its automotive chip division. This is in line with a larger industry trend to pool resources and focus on more lucrative markets, like AI hardware. Nearly 8,000 workers were reportedly let go by IBM, mostly from its consulting and human resources departments.
The company pointed to AI led restructuring and greater automation as major causes. Additionally, IBM has declared that it will not be hiring for positions that AI is predicted to replace in the near future.
Smaller but still noteworthy staff reductions have been made by Google and Amazon. While Amazon laid off about 100 workers from its Alexa and Devices divisions, Google reduced hundreds of positions across its Android, Pixel, and Chrome teams. According to reports, Meta continued the 2024 trend by laying off an additional 5% of its employees worldwide. 240 freshmen who failed internal assessments were also fired by Infosys.
Over 61,000 jobs have been lost in the tech industry alone this year, according to data gathered by layoff tracking websites. The total surpasses one lakh when paired with job losses in associated industries. According to the companies, the layoffs are intended to increase operational effectiveness and reroute funds toward growth areas, especially the development of artificial intelligence.
Although severance benefits and help with career transitions have been provided to impacted workers, market analysts and labor unions have expressed concerns about long term job stability in the technology industry. The drive for reskilling and digital upskilling is anticipated to pick up speed in the coming months as AI quickly replaces traditional roles.
