A look at the biggest layoffs of 2025

The technology industry announced a series of large workforce reductions during 2025, affecting tens of thousands of employees across semiconductors, cloud computing, IT services, telecoms and enterprise software.

After several years of expansion, many of the sector’s largest companies reduced headcount as they reviewed cost structures, adjusted to changing demand patterns and reassessed investment priorities. The scale of the reductions placed 2025 among the most significant years for job cuts in the technology sector since the early part of the decade.

In public statements, companies generally described the layoffs as part of longer-term restructuring programmes rather than as responses to immediate financial distress. Executives cited a range of factors, including cost management, organisational simplification and increased investment in areas such as artificial intelligence, cloud infrastructure and manufacturing capacity.

A year marked by large-scale restructuring

Intel announced the largest workforce reduction of the year, cutting between 24,000 and 27,000 roles globally. Reuters reported that the semiconductor company said the reductions were intended to lower operating costs and support increased investment in AI chips and specialised manufacturing. The move came as Intel continued efforts to improve competitiveness in the global semiconductor market.

In India, Tata Consultancy Services said it would reduce its workforce by around 20,000 employees, the largest job cut in the company’s history. TCS attributed the decision to a skills mismatch as client demand shifted towards AI-led service delivery models. The announcement drew attention given the company’s size and its position within India’s IT services sector.

Workforce reductions across Big Tech

In the United States, several large technology companies continued restructuring efforts that had begun earlier.

Amazon reduced headcount by between 14,700 and 16,000 roles during the year. The Wall Street Journal reported that the cuts affected operations, human resources and parts of the AWS cloud business, with the company also taking steps to reduce management layers while continuing selective hiring in technical roles.

Microsoft eliminated more than 15,000 jobs across multiple phases. Reuters reported that the reductions affected software engineering, the Xbox gaming division and middle management, as the company prioritised spending on AI infrastructure and cloud services.

Verizon announced its largest corporate layoff, cutting around 15,000 positions. According to Reuters, the telecoms group said the move was part of an effort to simplify its business structure and manage costs amid slower growth and ongoing capital expenditure.

Consulting, hardware and enterprise software firms

Other technology and professional services companies also announced significant workforce reductions.

Dell Technologies cut approximately 12,000 roles as part of a broader cost-management programme. Business media reported that Dell was shifting focus towards enterprise services and AI-optimised hardware, while demand for personal computers remained uneven.

Accenture reduced its workforce by around 11,000 employees. The Wall Street Journal reported that the consulting firm cited changes in client demand, including increased interest in generative AI solutions, which affected staffing requirements in some traditional consulting areas.

Panasonic announced 10,000 job cuts globally. Reuters reported that the company said the restructuring was intended to improve productivity by reducing operations in slower-growth businesses, including televisions, while increasing investment in automation and smart manufacturing.

SAP confirmed workforce reductions affecting roughly 10,000 employees, describing the move as a realignment of resources towards cloud computing and AI-focused business applications.

Further reductions across the sector

Several other companies announced smaller, though still significant, layoffs.

HP Inc. said it would cut an additional 6,000 roles, extending a restructuring programme scheduled to continue through 2028. Reuters reported that the company was embedding AI across product development, sales and support while reducing costs in legacy operations.

Toshiba reduced its workforce by around 5,000 employees as part of a post-privatisation restructuring aimed at streamlining operations.

At Salesforce, between 4,300 and 5,000 roles were eliminated, with customer support among the most affected areas. The company said AI tools were increasingly being used to handle customer interactions, a point reported by several US business outlets including CNBC.

Cisco cut approximately 4,250 jobs, shifting resources away from legacy networking hardware towards cybersecurity and AI-related services, according to Reuters.

Meta reduced headcount by about 3,600 employees, describing the action as performance-related terminations. The Wall Street Journal reported that the company said it was raising efficiency standards.

Oracle eliminated around 3,000 roles as it continued to shift investment towards cloud services following major AI-related infrastructure deals.

Shared themes, differing contexts

While the scale and timing of the layoffs varied, company statements reflected several common themes. Executives frequently referenced cost control, organisational efficiency and the reallocation of resources towards growth areas. Artificial intelligence was cited in multiple cases, though often alongside other factors such as market conditions, product mix and long-term strategy.

The reductions tended to affect support functions, management layers and business lines tied to slower-growth or legacy products. At the same time, many companies continued hiring in specific areas, including AI engineering, cloud services and cybersecurity.

What the year indicates

By the end of 2025, the volume of announced layoffs highlighted the extent to which the technology sector was reassessing workforce size and composition. While job cuts were widespread, they occurred alongside continued investment in selected technologies and capabilities.

Whether the restructuring seen in 2025 leads to greater stability in 2026 will depend on broader economic conditions, enterprise technology spending and the pace at which new investments generate sustained growth.