AI-Driven Layoffs: Tech Giants Announce Sweeping Job Cuts Amid Restructuring

Strategic Insights -

July 2025 has witnessed a surge in layoffs across the tech industry, with 26 companies slashing a total of 24,545 jobs. Microsoft, Intel, and Tata Consultancy Services (TCS) are among the key names that have announced significant job cuts, citing organisational restructuring and the adoption of artificial intelligence (AI) tools as reasons. While Microsoft and Intel have primarily blamed ongoing organisational changes, TCS has attributed its job cuts to its new "bench policy" that has been met with criticism. As the tech industry continues to evolve, these layoffs raise questions about the impact of AI on employment and the need for companies to adapt to the changing landscape.

Key Takeaways:

  • Microsoft announced layoffs affecting nearly 4% of its global workforce, impacting staff across various teams and geographies.
  • Intel laid off over 5,000 employees across four states in the US, with some reports suggesting staff were also let go in Israel.
  • TCS announced the axing of 2% of its global workforce, equating to over 12,000 job losses, amidst allegations of forced resignations following its new "bench policy".
  • The tech industry as a whole has seen 26 companies cut 24,545 jobs in July 2025, making it the highest number of layoffs in recent years.
  • Experts claim that TCS' bench policy puts employees in a difficult position, forcing them to seek new projects through the Resource Management Group, potentially impacting compensation, growth, and employment continuity.
  • Intel's CEO, Lip-Bu Tan, has prioritised the company's core products for a new era of computing defined by AI, leading to job cuts.
  • Indeed and Glassdoor announced 1,300 job cuts on July 10 to focus on AI, impacting research development, people, and sustainability teams.