The world’s biggest tech companies are cutting costs, which is leading to mass layoffs. This has led to a lot of uncertainty as many people are left without jobs. As per the layoff tracking website, layoffs.fyi, the number of companies that have reduced their headcount in 2025 is 218. This has led to job losses for 112,732 employees.
Tech companies have stated that the reason for the layoffs is advancements in AI and slower economic growth. Amazon, TCS, and Intel have reduced the number of employees in the IT service, consulting, and manufacturing sectors.
Amazon alone has cut down 14,000 roles, making 4% of its corporate workforce. This includes units in cloud, operations and HR. Intel has planned to reduce its employees by 24,000 in 2025. This is 22% of its total workforce. TCS has also cut down its workforce by 19,755 employees in the quarter ending on 30 September 2025. This is one of the steepest cuts in the company.
According to Reuters, Amazon is conducting one of the biggest layoffs in the history of the firm. HR, devices, Operations, and AWS will be the worst-hit sectors, as per agencies. According to Beth Galetti, the SVP of People Experience and Technology, this is done as Amazon wanted to run like the “world’s largest startup”. CEO Andy Jessy has cited that they are looking towards more AI adoption and the need to cut management layers.
In a sad but straightforward response, Jessy said that the company was considering its fund allocation as it aims to invest more in AI development. An internal memo has reportedly been circulated where the CEO has asked employees to find positions internally within 90 days. The first round of the layoffs was conducted on 29th October, where 14,000 employees were left out of work.
Heavy layoffs by Intel, which aims to reduce the headcount by 24,000, will impact employees in the US, Costa Rica, and Germany. The insane level of layoffs in the IT industry has been flagged by experts who believe that the growing automation is causing a narrowing of labour in this sector.
Other companies, including Google, Meta, Oracle, and Accenture, have also taken similar actions impacting several employees.
Microsoft has fired 4,000 employees, mainly from its Software engineering sector. According to a report by Bloomberg, Microsoft is preparing for an additional layoff of 6,000 employees this year.
