The global job market is undergoing one of its most significant transformations in decades, with artificial intelligence (AI) serving as both an advantage and a challenge. Businesses across various sectors are integrating AI to enhance efficiency and foster innovation, yet thousands of employees are suffering from this transition. Data from Layoffs.fyi reveals that approximately 204 tech firms have laid off around 89,964 employees worldwide as of September 2025. From major IT firms in India to leading companies in Silicon Valley, the narrative remains consistent: the rise of AI is swiftly altering workplaces, leading to increased job reductions. Accenture has recently confirmed the layoff of about 11,000 employees within a span of three months.
As a leader in adopting generative AI tools for corporate clients, the consulting and IT services giant is now witnessing its own workforce face displacement due to restructuring and cost-saving strategies driven by AI. Insiders suggest that this may just be the initial phase, with further job losses anticipated in the near future. In India, Tata Consultancy Services (TCS) has also implemented considerable workforce cuts. The company has officially acknowledged laying off around 12,000 employees—approximately 2 percent of its workforce—though reports indicate that the actual figure could be closer to 30,000.
While TCS has not directly attributed these layoffs to AI, its establishment of a dedicated AI and Services Transformation unit suggests that AI is pivotal to its future growth strategy. Other global tech giants are also making similar moves. Microsoft, which has invested significantly in OpenAI and incorporated AI features throughout its product lineup, has eliminated thousands of positions in non-essential business areas. Meta, under its “year of efficiency” initiative, plans to cut approximately 3,600 employees, focusing on middle management and underperforming teams while intensifying its commitment to AI innovation. Intel’s restructuring, linked to its emphasis on AI chips and semiconductor goals, has led to worldwide job reductions.
Amazon is downsizing its Alexa division, as voice assistants face competition from newer AI-driven solutions. CEO Andy Jassy has pointed out that generative AI diminishes the need for certain positions and has encouraged staff to reskill for an AI-centric future. Google continues to grow its Gemini AI ecosystem but is streamlining overlapping divisions to ensure profitability. In a surprising move outside the tech sector, Panasonic has announced a significant reduction of 10,000 jobs—about 4 percent of its workforce—while shifting its focus toward AI, biometrics, and energy storage technologies, citing falling demand for traditional products. These layoffs highlight a crucial reality: AI is no longer a distant concept but a current force reshaping industries.
Companies are keen to adopt automation and AI to maintain competitiveness, while employees now face the pressing necessity of upskilling to remain relevant. This shift signifies not only an economic transformation but also a social one, as the dynamics between human labor and machine intelligence are rapidly evolving.