Tech Titans Slash Jobs Amid AI Shift: TCS, Microsoft, Intel Lead Major Layoff Wave

A fresh wave of layoffs is sweeping across the global tech landscape as major firms including TCS, Microsoft, Intel, Meta, and Panasonic restructure their operations amid the growing influence of artificial intelligence (AI) and shifting market demands.

TCS Layoffs Rooted in Skill Mismatch

Tata Consultancy Services (TCS), India’s largest IT services company, is reducing its workforce by approximately 12,000 employees, or around 2 percent of its global staff. Interestingly, the company clarified that this move is not directly linked to AI advancements.

In an interview with Money Control, CEO K Krithivasan stated, “The layoffs are happening because of limited options to redeploy employees who do not match current project requirements.” He emphasized that the company remains committed to hiring and training talent. However, he acknowledged that placing some roles, particularly mid- to senior-level professionals, remains a challenge.

TCS has invested in upskilling its workforce, training over 550,000 employees in foundational digital skills and about 100,000 in advanced technologies. Yet, Krithivasan admitted that some experienced professionals are struggling to progress beyond the initial levels of training, making redeployment difficult.

Microsoft Cuts Jobs Despite Strong Earnings

Microsoft has also been trimming its workforce, letting go of more than 15,000 employees in 2025. An additional 2,000 staff, considered underperformers, have also exited the company.

This move comes despite Microsoft's strong financial performance and record-high stock prices. In a company-wide memo, CEO Satya Nadella acknowledged the emotional toll on employees, noting, “I understand how difficult this period has been for everyone.” He explained that the restructuring is essential for long-term alignment as Microsoft invests nearly $80 billion into AI infrastructure.

Intel’s Massive Workforce Reduction

Intel is implementing one of the largest job cuts this year, with plans to eliminate around 24,000 roles — nearly 25 percent of its workforce.

Announced during its quarterly earnings, the layoffs are part of a larger strategy to streamline operations following miscalculations in demand forecasting. New CEO Lip-Bu Tan stated that the company is aiming to become “leaner and more efficient.” Alongside the job cuts, Intel is also cancelling planned factory developments in Germany and Poland and shifting some operations from Costa Rica to Vietnam, impacting 2,000 employees in Costa Rica alone.

Meta Scales Down Reality Labs

Meta has made new cuts within its Reality Labs division, affecting teams behind products like the Supernatural fitness app. Though the company didn’t disclose numbers, it confirmed the layoffs are aimed at focusing more sharply on future mixed reality experiences.

Earlier this year, Meta also reduced its global headcount by 5 percent, primarily targeting underperformers.

Panasonic Joins the Trend

Japanese electronics giant Panasonic is eliminating 10,000 jobs globally, half of which are in Japan. CEO Yuki Kusumi explained that the decision is part of a strategy to reduce costs and shift resources toward future technologies such as AI.

“We’re moving away from slower segments like TVs and certain industrial products,” Kusumi said, expressing regret over the layoffs but stressing their necessity for long-term growth.