In recent developments across the global technology sector, major companies such as TCS, Microsoft, Intel, Meta, and Panasonic have announced large-scale layoffs, affecting thousands of employees worldwide. These decisions come at a time when the industry is undergoing significant transformations, particularly due to evolving business demands and the rapid rise of artificial intelligence (AI). While each company has cited different reasons for these reductions in workforce, ranging from restructuring to efficiency and even internal challenges like mismatches in employee skills, the common thread is a growing effort to adapt to the changing dynamics of the tech world. Many of these organizations are now focusing more on future-oriented projects, especially those involving AI, and this shift is reshaping how they manage their talent and operations.
India’s largest IT services firm, Tata Consultancy Services (TCS), is laying off approximately 12,000 employees, which accounts for about two percent of its global workforce. However, the company clarified that this decision is not directly related to productivity gains from AI. TCS CEO K Krithivasan explained that the main issue lies in the difficulty of redeploying employees who no longer meet the requirements of current projects. Although the company is still hiring and training new talent, some mid-level and senior employees are unable to move beyond the foundational stages of digital training. This has led to challenges in placing them in suitable roles, ultimately resulting in the decision to reduce the workforce.
Microsoft has also trimmed its staff significantly this year, letting go of over 15,000 employees. In addition, nearly 2,000 workers categorized as underperformers have exited the company. This is happening even as Microsoft continues to post strong earnings and sees its stock price reach new highs. CEO Satya Nadella addressed the layoffs in a company-wide memo, acknowledging the emotional difficulty of the decision. He emphasized that, despite Microsoft’s healthy financial condition, restructuring is essential for staying aligned with the company’s long-term objectives. A significant portion of Microsoft’s future plans revolves around AI, with around $80 billion being invested in AI infrastructure, making it crucial for the company to stay agile and forward-looking.
At Intel, one of the most dramatic workforce reductions is taking place, with about 24,000 employees—roughly a quarter of its entire workforce—facing job cuts. The company’s leadership stated that this move is part of a larger goal to improve operational efficiency, especially after overestimating demand in certain areas and expanding accordingly. The shift has led Intel to cancel planned projects in Germany and Poland, and to relocate some of its operations from Costa Rica to Vietnam. This relocation alone is expected to impact around 2,000 jobs in Costa Rica, marking a substantial reshaping of the company’s global footprint.
Meta, formerly Facebook, has also been implementing staff reductions, particularly in its Reality Labs division, which handles virtual and augmented reality initiatives. Teams working on projects like the Supernatural fitness app have been affected. While Meta hasn’t disclosed exact figures for these job losses, the company said that the layoffs are intended to streamline operations and concentrate more on the future of mixed reality technologies. Earlier in the year, Meta had already laid off five percent of its employees in a separate round that focused on removing underperforming personnel, signaling a consistent strategy toward tightening the organization.
Japanese electronics giant Panasonic is another major name making deep cuts, with plans to reduce its workforce by 10,000 employees globally. About half of these job losses will occur in Japan, with the remaining half distributed across its international operations. CEO Yuki Kusumi said the decision was prompted by the need to shift away from slower-growing segments like televisions and some industrial goods. The company is also aiming to redirect investments toward high-potential areas such as artificial intelligence. Kusumi expressed regret over the layoffs but stressed their importance in positioning Panasonic for sustained future growth.
Overall, these layoffs reflect a broader transformation in the technology industry. Companies are reassessing their strategies, balancing short-term cost concerns with long-term innovation goals. The rise of AI is not only changing how these businesses operate but also redefining the skills and roles required in the workforce. As a result, many organizations are focusing on upskilling and reskilling their employees while making difficult decisions to remain competitive and future-ready in a fast-changing technological landscape.
