The global technology sector has eliminated more than 122,000 positions across 257 companies in 2025, according to data from independent tracker Layoffs.fyi. While the figure represents approximately 20% fewer job cuts than 2024’s tally of 152,922, the nature of this year’s reductions reflects a fundamental restructuring of how technology companies operate.
The layoffs span industry titans and startups alike, with Amazon, Microsoft, Tata Consultancy Services and Salesforce among those making significant workforce reductions. What distinguishes 2025’s cuts from previous years is the strategic intent: companies are simultaneously shedding traditional roles whilst aggressively hiring for artificial intelligence and machine learning positions.
Amazon announced in October its largest corporate reduction to date, eliminating approximately 14,000 positions – roughly 5% of its white-collar workforce. CEO Andy Jassy, speaking during the company’s quarterly earnings call, attributed the cuts to cultural considerations rather than financial pressure or AI displacement.
“The announcement was not really financially driven, and it’s not even really AI-driven – not right now at least. It’s culture,” Jassy stated. The company recorded $1.8 billion in severance costs related to the layoffs whilst simultaneously posting quarterly revenue of $180.2 billion, up 13% year-on-year.
However, Amazon’s Senior Vice President of People Experience and Technology, Beth Galetti, had previously framed the cuts differently. In a blog post announcing the layoffs, she described AI as “the most transformative technology since the Internet” and linked the restructuring to adapting to “transformative technology.”
Microsoft executed multiple rounds of cuts throughout the year, eliminating more than 15,000 positions since May. The company announced 6,000 layoffs in May, followed by a further 9,000 in July – its largest reduction since 2023. Smaller cuts continued through September, representing approximately 6.7% of Microsoft’s global workforce.
The restructuring coincides with Microsoft’s $80 billion annual commitment to AI data centres and infrastructure. Despite the job losses, the company reported record quarterly revenue of $76.4 billion with $27.2 billion in profit. CEO Satya Nadella acknowledged the “emotional weight” of the cuts whilst describing them as necessary for positioning the company strategically.
Tata Consultancy Services made headlines in July when India’s largest IT services firm announced plans to reduce its 613,000-strong workforce by 2%, affecting approximately 12,000 employees. The cuts primarily target mid-level and senior management positions over the course of FY26.
CEO K. Krithivasan stated the move aims to make TCS “more agile and future-ready” but clarified that AI is not directly replacing workers. Instead, he cited a “capability mismatch” as the industry shifts toward cloud computing, data analytics and artificial intelligence. Employee unions have contested the layoffs, with CITU calling them illegal and demanding legal action.
Salesforce CEO Marc Benioff provided perhaps the most explicit acknowledgment of AI’s workforce impact. In September, Benioff revealed that the company had reduced its customer support division from 9,000 to approximately 5,000 employees as AI agents assumed responsibility for routine customer interactions.
“I’ve reduced it from 9,000 heads to about 5,000, because I need less heads,” Benioff stated on the Logan Bartlett Show podcast. AI agents now handle approximately 50% of customer conversations, with the company reporting that customer satisfaction scores remained comparable between human and AI interactions.
The admission marked a shift from Benioff’s August comments at the AI for Good Global Summit, where he insisted that AI would augment rather than replace workers. Salesforce said it redeployed “hundreds of employees” into other areas including professional services and sales.
Google’s cuts, whilst smaller in scale, reflect similar patterns. The company eliminated over 100 positions in its cloud division’s design and user experience research teams in October. Some cloud design teams were reduced by up to 50%, with affected employees given until December to find internal roles.
The layoffs represent Google’s ongoing restructuring to redirect resources toward AI infrastructure. CEO Sundar Pichai has emphasised the company’s intent to “be more efficient as we scale up so we don’t solve everything with headcount.”
Industry analysts offer competing explanations for the workforce reductions. IBM CEO Arvind Krishna attributes tech layoffs primarily to pandemic-era overhiring rather than AI displacement, calling the current cuts a “natural correction” after companies expanded headcounts by 30% to 100% between 2020 and 2023.
“I think people gorged on employment,” Krishna told The Verge. He predicts AI-related job displacement of up to 10% in certain sectors over the coming years but maintains this represents a manageable transition rather than the widespread elimination some fear.
However, the data suggests companies are fundamentally reshaping their workforce composition. AI-related job postings grew 25.2% year-on-year in Q1 2025, reaching 35,445 positions in the United States alone, according to Veritone data. Roles involving large language models, GPU infrastructure and AI ethics have seen particular demand, with LinkedIn reporting 67% year-on-year growth in the global AI talent pool.
For HR and business leaders, the implications extend beyond headline figures. The simultaneous elimination of traditional roles and creation of AI-focused positions signals a structural transformation requiring strategic workforce planning. Companies are not simply reducing headcount but fundamentally reconsidering which human capabilities remain essential as automation handles routine cognitive tasks.
The trend appears set to continue into 2026, with major technology companies having established recurring patterns of quarterly workforce reviews and rolling restructuring programmes. For organisations across industries, the tech sector’s experience offers both a cautionary tale about workforce planning and a roadmap for navigating AI-driven transformation.
