In a sweeping wave of layoffs, several major technology firms including TCS, Microsoft, Intel, Meta, and Panasonic have announced significant workforce reductions in 2025. While reasons vary from internal realignments to artificial intelligence (AI) integration and cost-efficiency, the common thread is a major recalibration of global operations.
Tata Consultancy Services (TCS), India’s largest IT services company, confirmed a 2% workforce reduction, impacting nearly 12,000 employees worldwide. However, CEO K Krithivasan stressed that these cuts are not related to AI-driven productivity gains. “The layoffs are happening because of limited options to redeploy employees who do not match current project requirements,” he said in a recent interview. Although TCS continues to hire and train talent, skill mismatches particularly at mid and senior levels have left the company unable to effectively place some professionals, even after advanced digital training initiatives.
Massive Layoffs Across Microsoft, Intel, Meta, and Panasonic
Microsoft has also trimmed its workforce significantly, laying off over 15,000 employees so far this year. Additionally, about 2,000 workers were exited based on performance assessments. Despite posting strong earnings and hitting record stock valuations, CEO Satya Nadella acknowledged the need to restructure in pursuit of long-term goals including Microsoft’s massive $80 billion investment in AI infrastructure.
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Intel announced the largest cut among the five companies, with plans to lay off approximately 24,000 employees, nearly a quarter of its global staff. CEO Lip-Bu Tan cited misaligned demand projections and overcapacity in certain areas. The company is cancelling factory projects in Germany and Poland, while relocating some operations from Costa Rica to Vietnam, affecting about 2,000 Costa Rican employees alone.
Meta, too, has initiated another round of job cuts, this time within its Reality Labs division the arm responsible for VR and AR technologies like the Quest headset and Supernatural fitness app. Although the exact number was not disclosed, the company stated the move was to streamline operations and prioritise future mixed reality experiences. This follows an earlier workforce reduction of 5%, primarily aimed at underperforming employees.
Japanese electronics giant Panasonic is also cutting 10,000 jobs globally. Half of the layoffs will occur in Japan, with the rest spread across international operations. CEO Yuki Kusumi described the decision as painful but necessary, as the company pivots away from low-performing sectors like televisions and focuses on future-ready technologies such as AI.
