Tech layoffs reshape industry

The technology sector is seeing its steepest job cuts in decades. More than 166,000 workers have already been laid off in 2025, a figure projected to reach 235,000 by year’s end, following 280,000 cuts in 2024. U.S. firms account for over 70% of reductions, reflecting their weight in global IT.
Unlike past downturns, these cuts reflect structural shifts. Companies are downsizing while investing heavily in automation, cloud solutions, and artificial intelligence. Intel plans to shrink its workforce from 109,000 in 2024 to 75,000, with similar moves by Tata Consultancy Services, Panasonic, Meta, Microsoft, and STMicroelectronics.
AI is displacing roles in administration, software testing, and support, while creating demand for specialists in cybersecurity, data analysis, and algorithm design. Analysts warn of service risks but stress this transformation could permanently reset priorities in cloud, telecom, and data centers, favoring leaner, AI-driven models.