Athira Sethu
Kochi, 29 October 2025
The tech sector is hit with huge layoffs as businesses such as Amazon, Microsoft, Meta, and Google are cutting their workforce to invest more in artificial intelligence (AI). The layoffs are a part of a larger trend where businesses are restructuring to adjust better to the increasing presence of AI in business. In total, a minimum of 81,445 jobs have been cut as a result of these AI-related restructurings.
Amazon’s job cuts:
On October 28, Amazon reported it would be laying off 14,000 employees as part of its actions to simplify operations and invest more in artificial intelligence. The company stated that these job cuts are a part of a broader effort to cut bureaucracy, eliminate unnecessary layers, and concentrate on what is most important to customers.
Amazon’s Senior Vice President of People Experience and Technology, Beth Galetti, clarified that while jobs would be cut in certain areas, the company would still be hiring in key areas. Galetti pointed out that AI is possibly the most powerful tool businesses have ever had, allowing them to innovate at a speed that is unprecedented. In the future, Amazon will continue to hire in essential areas while also eliminating inefficiencies.
Amazon CEO Andy Jassy has been vocal about the role AI plays. In an internal company memo, he challenged employees to adopt AI, stating that those who do will be better placed to assist Amazon in its growth.
Other companies impacted:
Amazon is not alone among the big tech companies in reducing employment levels as a result of AI. Here’s a brief rundown of other companies that have done the same:
- Meta: Meta in late October cut 600 workers from its AI division, Meta’s Superintelligence Labs. Although it was a major reduction, Meta remains committed to growing its AI teams and urges impacted employees to apply for other positions at the company.
- Google: Google, too, has trimmed its staff in accordance with its effort to accelerate AI research. In October, 100 employees of its design team were let go, and previously, over 200 contractors who worked on AI projects were dismissed.
- Microsoft: Microsoft shared plans to lay off 4,000 employees, mostly software engineers. This is in line with the company’s focus on AI, which has generated fears among software developers about the security of their jobs.
- Salesforce: In September, Salesforce eliminated 4,000 customer service positions and replaced most of these with AI software. This is in the bid to make the company more efficient through AI.
Effect on other businesses:
Other companies are also making similar adjustments:
- Tata Consultancy Services (TCS) laid off 6,000 workers this year, with plans for more cuts as it embraces AI.
- Accenture announced it would cut 11,000 jobs globally, reflecting its restructuring efforts to incorporate more AI-driven solutions.
- IBM, Cognizant, Wipro, and Intel have all reduced their workforces as part of their transition to AI and other new technologies.
The growth of AI is revolutionizing the operation of tech firms, with job losses sweeping the sector. While some are cutting staff to make their business leaner, they are also pouring money into AI to remain competitive. Tech workers will have to evolve with the times, acquiring new skills in order to remain relevant in the changing environment. The future of technology does have fewer humans doing some things, but AI is also creating new opportunities in other sectors.
