A wave of job cuts is sweeping across the global technology sector in 2025, with major players such as TCS, Microsoft, Intel, Meta, and Panasonic laying off thousands of employees. The reasons vary—from internal skill mismatches to efficiency-driven restructuring—but a common thread is the increasing influence of artificial intelligence on business models and talent demands.

TCS Cuts 12,000 Jobs Amid Skill Mismatches

Tata Consultancy Services (TCS), India's largest IT services company, has announced layoffs impacting around 12,000 employees, amounting to roughly 2% of its global workforce. However, the company clarified that these job losses are not linked to AI-related productivity changes.

TCS CEO K Krithivasan, in an interview with Money Control, said, “The layoffs are happening because of limited options to redeploy employees who do not match current project requirements.” Despite extensive upskilling efforts, including training over 5.5 lakh employees in basic digital skills and nearly 1 lakh in advanced technologies, Krithivasan admitted that certain mid- and senior-level employees are struggling to transition beyond foundational training. The company continues to hire actively, but faces difficulty deploying those whose skills are no longer aligned with current demand.

Microsoft Cuts 15,000+ Jobs Despite Strong Performance

Microsoft has also downsized significantly, letting go of more than 15,000 employees this year. Additionally, about 2,000 individuals categorized as underperformers have exited the company. The layoffs come despite robust earnings and record stock prices.

CEO Satya Nadella addressed employees in a memo, acknowledging the challenges of the restructuring process: “I understand how difficult this period has been for everyone.” Nadella emphasized that the layoffs were essential to align with Microsoft's long-term strategic goals, particularly as the company allocates approximately $80 billion toward expanding its AI infrastructure.

Intel to Cut 24,000 Jobs and Cancel Key Projects

Among the largest workforce reductions comes from Intel, which is slashing 24,000 positions—nearly 25% of its global staff. New CEO Lip-Bu Tan announced the move during the company’s latest earnings call. He explained the decision as part of Intel's effort to become “leaner and more efficient” following overinvestment in areas where expected demand failed to materialize.

As part of its shift, Intel is cancelling factory projects in Germany and Poland and relocating some operations from Costa Rica to Vietnam, impacting around 2,000 workers in Costa Rica alone.

Meta Streamlines VR Division

Meta has implemented fresh layoffs in its Reality Labs unit, the team behind its VR and AR innovations. While specific numbers weren’t shared, sources indicate that teams involved in projects like the Supernatural fitness app were among those affected. Meta stated that the reorganization aims to “streamline operations and improve focus on future mixed reality experiences.”

Earlier this year, the company had already let go of 5% of its workforce, targeting underperforming staff as part of broader efficiency goals.

Panasonic Targets 10,000 Job Reductions

Panasonic has also announced plans to cut 10,000 jobs globally, with half of them in Japan. CEO Yuki Kusumi described the move as a necessary step to reposition the company away from slow-growth areas like televisions and certain industrial products.

Expressing regret, Kusumi stated the decision was difficult but emphasized the importance of preparing for the future: “These steps are necessary for long-term growth.” The company aims to invest more heavily in emerging areas, including artificial intelligence and advanced manufacturing.

As AI continues to reshape corporate strategies, the global tech workforce is facing a critical period of realignment—pushing both companies and professionals to adapt faster than ever.