IT Firms Slash Jobs Amid Shift to AI

Several tech firms, including giants like Amazon and TCS, are going for massive layoffs, citing the switch to AI-powered systems. With Artificial Intelligence-related roles to gain more prominence in the future, companies are advising youth to upgrade their skill set, to remain relevant in the market.

The tech firms are able to understand the reduced need for more manpower, as AI and digital systems would replace individuals in the near future, and going ahead with the job cuts. In the future, employees in the tech industry will need to add real value to their roles and prove their need in the network. Else, there is a threat to their employment and could be fired without much hesitation.

The IT companies are being put under pressure to go for cost cutting, which is the main reason behind the massive layoffs. Prominent IT firms like Intel, Microsoft, and Applied Materials have reportedly removed thousands of employees in just one week in October.

Recently, Amazon also announced that it would lay off nearly 14,000 corporate employees in an effort to reduce bureaucracy. The retrenchment was announced as part of multi-year plan to cut costs. These job cuts are not just limited to the US but even spreading to India, where the companies have a significant existence.

US-based logistics company UPS declared that it would fire nearly 48,000 employees, as part of its reorganization efforts aimed at decreasing the delivery services for Amazon packages. The announcement about layoffs came hours after Amazon announced about its layoffs on October 28. By the end of 2024, UPS had a total workforce of 4,90,000 employees across the world. The layoffs are expected to have an impact on the management roles too.

Microsoft also announced about laying off three per cent of its workforce, which could make up to 6,000 employees. The retrenchment affects all levels of the tech giant’s offices, including those outside the US. Surprisingly, the company’s AI director Gabriela de Queiroz was also among those who were asked to leave.

In October, Meta said it would cut 600 jobs from its Meta Superintelligence Labs division, as part of the social media giants switch to the AI-powered platforms. The division has a total of over 3,000 employees. In addition to the 600 job cuts, Meta also removed more than 100 employees in the risk review division.

In India, IT giant Tata Consultancy Services (TCS) is also conducting layoffs. Over 20,000 employees left the company in the quarter ending September 20, 2025. The layoffs include both voluntary and involuntary exits. While the company announced that 12,000 employees would be removed, it is learnt that there is a plan to cut about 2% of its global workforce. The layoffs are mainly due to macroeconomic uncertainty, AI integration and restructuring effort.