Technology companies have been steadily cutting jobs for the past few years, and this is expected to increase globally in 2025. Analysts estimate that the large number of job cuts are due to the use of artificial intelligence (AI), pressure to reduce costs, and weaker-than-expected earnings.

According to data from Layoffs.FYI, which tracks job cuts, more than 122,000 jobs were officially cut at 257 technology companies around the world in 2025. According to a report published by The Times of India, at least 50,000 of the layoffs were directly attributed to AI and automation. According to CNBC, Salesforce laid off 4,000 customer support employees in September. According to the company, 50 percent of the work there can now be done by AI. Language learning app Duolingo said in April that it would no longer hire contractors to do work that AI can do. Companies have been investing heavily in their AI infrastructure and tools throughout the year. In addition, employees in roles that could be replaced by automation or that do not fit into future strategies are seen as being in the mood to be cut. In the US alone, various figures show that more than 1.1 million jobs were cut across all sectors in 2025. With this, this year has become the worst year since the Covid pandemic in terms of job losses.

Large and medium-sized companies in the technology sector cut the most jobs. Intel had laid off about 24,000 employees, making it the largest job cut of the year. The company presented competitive pressure and large capital expenditures as the main reasons during the restructuring of chip manufacturing and production strategy. Amazon suspended about 14,000 corporate positions. This was also linked to plans to simplify the management level and expand the use of AI in internal processes.

Similarly, Microsoft laid off thousands of employees. About 9,000 jobs were lost in gaming and customer support units. However, the company said it was continuing to invest in AI research, cloud and data centers, and hire new skilled employees.

Tata Consultancy Services cut about 20,000 jobs in India's IT services sector. The company explained that AI and automation have increased the imbalance between customer demand and the required skills.

Reports from TechCrunch, Business Insider, and Fast Company have also reported a similar trend in a large number of enterprise software, consulting, cybersecurity, and platform companies. On the one hand, Meta owner Mark Zuckerberg, who on the one hand, laid off regular technical employees but on the other hand, spent millions of dollars to bring in experts from other companies, was also well-known in the year 2025.

In an interview with CNBC, some experts also pointed out that AI is just an excuse for employee dismissal. They call it 'AI-washing'. This means that they may be using AI as an excuse to cover up their business failures or old cost-cutting strategies.

But this trend of cuts is not limited to the technology sector. Of the more than 1.17 million jobs cut in the US, a significant number of employees have also been laid off in retail, manufacturing, management and financial services.

While analysts point to interest rates, weak consumer demand and cost pressures as reasons, many companies have publicly stated that AI and automation are the direct causes. Some companies have stated that productivity increases due to AI technology will be sufficient to have fewer people in administrative, support and routine roles. There is a trend among companies to reduce roles that AI cannot directly replace with the help of AI and other technologies.