- By Prateek Levi
- Fri, 01 Aug 2025 02:33 PM (IST)
- Source:JND
July 2025 has turned out to be one of the toughest months for tech employees in recent memory. A total of 26 companies laid off nearly 24,545 people—marking the highest number of layoffs in a single month this year. From Microsoft and Intel to homegrown giant TCS, major players cited organisational restructuring and the push for “leaner” teams as the driving force. But behind it all, the quiet influence of AI is becoming hard to ignore.
Microsoft kicks things off.
The month started with Microsoft announcing job cuts that impacted around 4% of its global workforce. The layoffs spanned various roles and regions and followed multiple rounds of cuts earlier this year—including over 6,000 in May and 300 in June.
While Microsoft claims these changes are part of a broader organisational realignment to improve efficiency, the message is clear: the company is streamlining operations for a more agile structure, with reports suggesting a reduction in middle management layers.
Intel cuts over 5,000 jobs.
Just days later, Intel announced more than 5,000 layoffs across four U.S. states, with reports of further downsizing in its Israel office. The company says it's trimming down to become faster and more efficient under CEO Lip-Bu Tan’s leadership. Tan, who has placed AI at the centre of Intel’s future plans, is refocusing resources around core products that align with the changing computing landscape.
TCS stuns with over 12,000 layoffs.
While most layoffs were concentrated in the U.S., India's TCS made headlines on July 27 with plans to cut about 2% of its global workforce—amounting to over 12,000 employees. The announcement came amid mounting criticism over the company’s new “bench policy,” which limits employees’ time on the bench (a period without project assignment) to just 35 days a year.
Employees were to dedicate 4–6 hours of their day to upskilling during this time, with rigid requirements to work out of the office. Opponents believe the new policy makes employees hustle for new projects, or else they are fired—hurting not only job security but also long-term development and pay.
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TCS defended the move, describing it as part of a strategic push to become “future-ready,” with new investments in AI, infrastructure, and global markets—all requiring a shift in how teams are structured.
AI reshaping tech jobs
Indeed, and Glassdoor joined the wave of layoffs on July 10, letting go of around 1,300 employees. The firms indicated that the action was part of a wider shift towards AI. Teams that were affected were research, sustainability, and HR. CEO Hiyasuki Deko Idekoba confirmed that AI is fundamentally transforming the industry and emphasised the need to adjust their products and teams in order to remain competitive.