Tech Explained: Over 1L tech workers laid off in 2025. Reason? AI  in Simple Terms

Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Over 1L tech workers laid off in 2025. Reason? AI in Simple Termsand what it means for users..

The layoffs occurred across 550 companies

What’s the story

The year 2025 has seen a wave of job cuts across the technology sector, with over one lakh employees losing their jobs.
According to Layoffs.fyi, an independent tracker of layoffs, more than 122,549 tech workers have been laid off by as many as 551 companies.
The trend is largely attributed to the growing influence of artificial intelligence (AI) in the industry.

Major companies announce significant layoffs

Several major tech companies have announced massive layoffs this year.
Amazon, for instance, announced its biggest-ever layoff in October, cutting 14,000 corporate jobs. The move was part of a strategy to invest more in its “biggest bets,” including AI.
Microsoft also cut 15,000 jobs through 2025 with a major restructuring announcement in July that affected 9,000 employees.

TCS and Intel also joined the layoff trend

India’s largest tech company Tata Consultancy Services (TCS) announced a 2% cut in its workforce, translating to nearly 12,000 jobs.
However, the company denied claims that these job losses were due to AI replacement. It cited skills mismatch and an evolving business model as the real reasons behind this move.
Similarly, chipmaker Intel had mostly completed cutting 15% of its workforce by July.

Salesforce and HP announce job cuts

Salesforce’s CEO Marc Benioff confirmed in September that 4,000 customer support jobs had been cut with the help of AI.
The company is also reportedly looking to hire more staff along with these cuts.
Meanwhile, PC maker HP announced plans to cut between 4,000 and 6,000 jobs globally through fiscal 2028 as part of its efforts to streamline operations and integrate AI across workflows.

Other tech giants also announce layoffs

Apple has laid off dozens of sales workers across the US, according to a Bloomberg report.
Meta’s Instagram plans to lay off 600 employees from its AI division in a bid to speed up product development.
Google also laid off 100 employees in design-related roles as part of its ongoing push to accelerate its AI agenda.