Tech Sector Faces 2,00,000 Job Cuts; More Layoffs Ahead
The global tech sector is undergoing a significant workforce contraction, with over 2,00,000 jobs already lost in 2025 and an additional 30,000 layoffs anticipated in the next two months.
According to a recent report cited by The Economic Times, this wave of job cuts is being driven primarily by cost-cutting measures and accelerated adoption of artificial intelligence and automation technologies.
Layoffs Led by Major Tech Firms
Companies such as Intel, Amazon, Microsoft, Meta, and Tata Consultancy Services (TCS) have been at the forefront of these layoffs.
Companies are streamlining operations and adapting to new technological paradigms, particularly those involving generative AI and machine learning, through restructuring efforts.
The report notes that automation is happening “at the speed of light,” leaving little room for traditional workforce adjustments.
Layoffs have affected thousands of tech professionals in India, cutting across roles in software development, IT services, and middle management.
The trend reflects a broader shift in how companies are prioritizing efficiency and scalability over headcount.
Reskilling No Longer a Sufficient Solution to Layoffs
Experts now argue that reskilling and upskilling may not be enough, unlike in previous downturns when companies considered these strategies viable solutions to job loss.
The pace and nature of automation are rendering many roles obsolete, regardless of retraining efforts.
Mohandas Pai, former Head of HR at Infosys and Chairman of Aarin Capital, explained that the current layoffs are linked to a flattening of organizational structures.
As hiring at the entry level slows, companies are left with an excess of middle and senior-level personnel, many of whom are now vulnerable to displacement.
The report emphasizes that while reskilling remains important, it cannot fully address the structural changes underway.
The demand is shifting toward highly specialized roles in AI development, data science, and platform engineering—areas that require deep technical expertise and are not easily accessible through short-term training programs.
Impact on Indian Tech Sector
India’s IT sector, long considered a global leader in software services, is facing mounting pressure to adapt.
TCS, Infosys, and other major players have announced workforce reductions. They are recalibrating their business models to align with AI-driven service delivery.
According to India Today, nearly 1 lakh tech employees have already been affected by layoffs this year. More job cuts are expected as companies continue to restructure.
The shift is influencing hiring patterns across the tech industry.
There are fewer openings for generalist roles and growing demand for niche skills in AI, cybersecurity, and cloud infrastructure.
What Lies Ahead
Industry analysts predict another 30,000 tech layoffs globally over the next two months. India will bear a significant portion of this impact.
The report urges a rethinking of workforce strategies to address ongoing disruptions.
It highlights the need for long-term talent development, stronger industry-academia linkages, and policy support for displaced workers.
While some companies are investing in internal training programs, the effectiveness of these initiatives remains uncertain.
The challenge goes beyond simply learning new tools.
It requires adapting to a fundamentally different way of working, where machines increasingly handle routine tasks and decision-making.
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