The global tech sector is experiencing another significant wave of layoffs in 2025, with Microsoft, Salesforce, Oracle, and Tata Consultancy Services (TCS) revealing substantial workforce reductions. The common factor driving these job cuts is the swift incorporation of artificial intelligence (AI) into business operations, resulting in extensive restructuring and changes in focus. Salesforce and Oracle have confirmed layoffs affecting hundreds of employees across major hubs in recent filings with U.S. state regulators. Oracle stated it would cut over 250 positions across Redwood City, Pleasanton, and Santa Clara, in addition to 101 jobs in Seattle. Similarly, Salesforce is reducing its workforce by over 260 positions in San Francisco and nearly 100 in Seattle, effective November 3.
These layoffs are closely linked to Salesforce’s AI platform, Agentforce. The company noted that since launching Agentforce last year, which has revolutionized customer support operations, they have deployed help.agentforce.com, leading to a decline in support cases and eliminating the need to backfill support engineer roles. Hundreds of employees have been successfully redeployed into areas like professional services, sales, and customer success. Microsoft has been the most aggressive in its workforce reduction this year, laying off more than 15,000 employees across its product, engineering, sales, and gaming divisions since May, following over 10,000 layoffs in 2023. These cuts occur despite substantial revenue growth, as the company undertakes a strategic realignment while committing more than $80 billion to AI infrastructure investments.
TCS has confirmed that it will reduce its workforce by around 12,000 employees—about 2 percent of its total headcount—as part of its strategy to build a ‘future-ready organization’ with significant investments in AI and next-gen technologies. The company’s controversial ‘bench policy,’ limiting the time employees can stay unassigned to projects, has raised additional concerns among workers. The layoffs are not confined to these four companies; Intel plans to eliminate up to 25,000 roles by the end of 2025, while Meta has laid off about 3,600 employees as it seeks to improve productivity standards. Google has also conducted multiple rounds of layoffs across various departments as it prioritizes AI-first strategies.
While Amazon has been quieter, it has trimmed jobs in its AWS division and other areas, with CEO Andy Jassy indicating that generative AI tools will likely lead to a reduction in workforce sizes. Smaller tech companies are also affected, with Scale AI cutting 200 full-time employees and 500 contractors in July, and cybersecurity firm CrowdStrike reducing around 500 roles to optimize expenses. According to industry tracker Layoffs.fyi, over 83,000 tech workers have lost their jobs in 2025 across 194 companies—just three quarters into the year. While companies present these decisions as efficiency improvements, it is evident that AI is rapidly transforming the workforce, resulting in significant job losses for thousands of employees worldwide.