DIGITAL LIFE

Global layoffs hit new record in 2025 as AI reshapes workforces

The year 2025 was marked by large-scale layoffs in the global technology sector, with companies large and small announcing deep job cuts as they grapple with overexpansion, cost pressures, and the growing transition to artificial intelligence.

At least 112,000 employees have been laid off so far this year at 218 companies, according to layoffs.fyi, highlighting the breadth of the restructuring wave.

On Monday, Apple was the latest to join the list, confirming it is reducing roles in its sales teams.

The iPhone maker stated that the layoffs would affect only a small number of positions and are part of an effort to strengthen customer engagement.

But the announcement contributes to the rapid succession of job reductions across the industry.

Tech giants respond to overexpansion and new AI demands; Amazon Leads the Way with Up to 30,000 Job Cuts

Several large companies have acknowledged that the layoffs stem from a combination of over-hiring during the pandemic and the need to redirect resources to artificial intelligence and cloud infrastructure.

Amazon, one of the world's largest employers, is in the midst of what could be its biggest corporate downsizing yet.

The company is poised to eliminate up to 30,000 corporate positions as part of a plan to streamline operations after what CEO Andy Jassy described as “years of overbuilding” to meet pandemic-era demand.

In a memo to employees, Jassy said most employees affected by the cuts would have 90 days to seek internal positions.

He emphasized that the changes were not directly driven by AI or financial pressures, but aimed to reduce “corporate fat” and allow Amazon to operate as “the world’s largest startup,” according to the memo.

Amazon laid off more than 14,000 employees in late October, impacting units in its cloud services, retail, devices, advertising, and grocery divisions.

State filings in California, Washington, New York, and New Jersey show that engineering jobs bore the brunt of the reductions, accounting for nearly 40% of the more than 4,700 publicly reported layoffs.

Another round of cuts is expected in early 2026...While Amazon has emphasized that it is not replacing workers with AI today, it has acknowledged that significant investments are needed to develop AI systems and cloud infrastructure, forcing reductions elsewhere.

As the cost of deploying AI decreases, the company plans to allocate billions to strengthen AWS data centers and expand AI tools across its product lines.

Microsoft is also deepening its restructuring...In July, the company announced it would lay off approximately 9,000 employees, or just under 4% of its global workforce. The layoffs span multiple teams and geographies and follow several previous rounds this year, including a performance-related reduction of less than 1% in January and over 6,000 cuts in May, followed by another 300 in June.

Microsoft employed 228,000 people in mid-2024 and had already laid off 10,000 workers in 2023.

The company stated that the latest reductions are linked to its ongoing effort to redirect spending toward artificial intelligence and cloud computing.

Meta has also begun tightening operations within its AI units. The company is poised to cut approximately 600 jobs in its AI infrastructure division, Fundamental AI Research Labs (FAIR), and other product-related groups. The layoffs were announced by Meta's AI chief, Alexandr Wang, who joined the company this year as part of Meta's $14.3 billion investment in Scale AI.

The cuts aim to flatten management layers and improve agility...Apple's reduction, while relatively modest compared to other tech competitors, underscores that even the most valuable company in the sector is adjusting its workforce structure as it enhances its focus on customer-centric operations.

Semiconductor and IT Services Companies Undertake Aggressive Restructuring...The layoffs were not limited to consumer-facing technology companies. Chipmaker Intel is undergoing one of its most dramatic restructurings, planning to cut approximately 24,000 employees — roughly 22% of its global workforce — by 2025.

The reductions accompany a multi-year strategy to reshape its manufacturing operations and reinvest in areas where it sees a long-term competitive advantage. Indian IT giant Tata Consultancy Services (TCS) also drastically reduced its workforce, cutting 12,000 jobs in the quarter ending September 2025, primarily among mid- and senior-level employees.

The company's workforce fell by 20,000 in the second quarter, marking its largest reduction on record.

Cisco announced plans to eliminate approximately 4,250 jobs, or 5% of its global workforce, as it moves away from traditional hardware to embrace subscription-based software, cybersecurity, and cloud networking.

Government records show cuts concentrated in its offices in Milpitas and San Francisco.

Logistics and manufacturing employers also feel the pressure....The wave of restructuring extends beyond technology, reaching the logistics and manufacturing sectors. United Parcel Service (UPS), which began the year with nearly 500,000 employees, has already cut approximately 48,000 jobs so far.

The reductions are part of the Network Reconfiguration and Reimagined Efficiency program, designed to increase margins and restore investor confidence after a period of sluggish performance. UPS stated in its third-quarter earnings report, released in late October, that approximately 34,000 of the cuts were operational roles linked to a broader cost optimization effort.

Companies cite AI, but experts warn about “AI laundering”...While several companies have pointed to artificial intelligence as a factor accelerating restructuring, experts warn that many companies may be exaggerating AI's role in job cuts. Some companies have explicitly stated that they are replacing workers with automation. In May, Klarna CEO Sebastian Siemiatkowski said the fintech company had managed to reduce its workforce by about 40%, partly thanks to AI.

Duolingo announced in April that it would stop using contractors for tasks that AI can now manage.

Salesforce laid off 4,000 support positions in September, saying AI could handle half of all customer interactions. But management experts warn that companies may be using AI as a convenient excuse for more traditional cost cuts.

Peter Cappelli, a professor at the Wharton School, told CNBC that there is “very little evidence” that AI eliminates jobs on the scale that companies sometimes claim.

“Using AI to save jobs proves extremely complicated and time-consuming,” Cappelli said. “There’s a perception that it’s simple and cheap, and it’s actually not.”

Kevin Thompson, CEO of 9i Capital Group, said that many companies are simply correcting “pandemic bloat” after years of retaining employees amid market volatility.

by: Vatsala Gaur