The technology industry has experienced a significant wave of layoffs in 2025, with U.S.-based tech companies cutting over 126,000 jobs. This trend has impacted a wide range of companies from large corporations to startups. Major industry players like Intel, Microsoft, Amazon, and Tata Consultancy Services have announced substantial workforce reductions, citing reasons such as the rapid adoption of artificial intelligence, organizational restructuring, and cost-control measures.
The push towards AI integration has been a primary catalyst for the job cuts, with companies aiming to automate tasks and streamline operations. For instance, Salesforce eliminated customer support roles after AI began handling a significant portion of the workload. While some experts see this as a necessary market correction after over-hiring during the pandemic, the scale of the layoffs points to a broader structural shift within the tech sector as it adapts to new technologies and economic pressures.