Over 83,000 tech jobs lost in 2025 alone—how is AI reshaping the industry?
The tech industry is reeling from a seismic shift in 2025, with giants like Microsoft, Salesforce, Oracle, and Tata Consultancy Services (TCS) slashing thousands of jobs globally. According to Layoffs.fyi, 83,000 tech workers across 194 companies have been laid off this year, driven by artificial intelligence (AI) automating roles once thought secure. Oracle recently confirmed over 250 job cuts in California and 101 in Seattle, while Salesforce plans to eliminate 360 roles by November 3. Microsoft’s aggressive cuts exceed 15,000, and TCS is trimming 12,000 positions. Why is this happening now? The answer lies in AI’s rapid integration—Salesforce’s Agentforce platform alone handles millions of customer queries, reducing the need for human engineers. This article dives into the worst-hit departments, real stories like an ex-Infosys consultant laid off by Oracle, and what this means for tech’s future.
Why AI-Driven Layoffs Are Spiking in 2025
The tech sector’s 2025 layoffs aren’t just about cost-cutting—they signal a profound transformation driven by AI. Companies are racing to integrate tools like Salesforce’s Agentforce and Microsoft’s Copilot, which streamline operations but render traditional roles obsolete. Salesforce, for instance, reported that Agentforce has slashed customer support cases, eliminating the need for many engineers. A spokesperson noted, “We’ve redeployed hundreds into sales and customer success,” but for many, redeployment isn’t an option. Oracle’s cuts, particularly in its cloud division, align with heavy AI infrastructure investments, while Microsoft’s 15,000 layoffs span engineering, sales, and gaming.
The numbers are staggering: Layoffs.fyi reports 83,000 tech job losses in 2025, surpassing 2024’s 150,000 across 551 firms. This isn’t a blip—it’s a trend. AI’s ability to handle coding, customer support, and data tasks is reshaping the workforce, leaving mid-level and entry-level roles vulnerable.
Worst-Hit Departments: Where the Axe Falls
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Customer Support: Salesforce’s Agentforce now manages millions of inquiries, reducing the need for support engineers. The company cut 4,000 customer support roles, shrinking the division from 9,000 to 5,000.
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Software Engineering: Microsoft’s layoffs heavily targeted engineers, with AI writing 30% of its code, per CEO Satya Nadella. Oracle’s cloud unit also saw significant cuts.
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Sales and Regional Support: Microsoft’s non-technical roles, especially in sales, faced deep cuts as AI-driven tools like Copilot streamline processes.
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Traditional IT Services: TCS’s 12,000 layoffs hit mid-level and senior IT professionals, driven by skill mismatches and AI handling repetitive tasks.
A Human Story: Ex-Infosys Consultant’s Ordeal
Among the numbers are real people. An ex-Infosys consultant, laid off by Oracle just nine months after joining, shared their story on X: “I took a risk, moved to the US, and now I’m out. No warning, just gone.” This reflects a broader sentiment of shock and uncertainty. Posts on X highlight high performers—directors, architects, and PMs—being “boxed out” without logic, even after years of stellar reviews.
Why This Matters Right Now
The 2025 layoffs underscore a pivotal moment: AI isn’t just augmenting jobs—it’s replacing them. Companies are prioritizing efficiency and long-term AI dominance, but at what cost? Entry-level workers, especially those aged 22-25 in AI-exposed roles, face a 13% employment drop, per a Stanford study. Meanwhile, demand for AI engineers and data scientists is soaring. This shift demands reskilling, as traditional tech roles vanish and new opportunities emerge.
For workers, this is a wake-up call to adapt. For companies, it’s a gamble—cutting jobs to fund AI may yield efficiency but risks alienating talent. The public is reacting strongly, with X posts decrying the “cold” nature of these cuts and calling for more compassionate transitions.
Actionable Advice for Tech Workers
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Reskill Now: Learn AI-related skills like machine learning or data science. Platforms like Coursera and edX offer affordable courses.
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Explore GCCs: Global Capability Centres are hiring, with 100,000 jobs created this year compared to 20,000 by traditional IT firms.
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Network Strategically: Engage on platforms like LinkedIn and X to connect with AI-focused recruiters and stay visible.
What’s Next for Tech?
The AI revolution is irreversible. Companies like Microsoft, Salesforce, Oracle, and TCS are betting on automation to stay competitive, but the human toll is significant. As AI handles more tasks—30-50% of Salesforce’s work and 30% of Microsoft’s code—the industry must balance efficiency with empathy. Governments and firms may need to invest in reskilling programs to soften the blow. For now, the tech job market remains a battlefield, with AI as both disruptor and opportunity.
Breaking Reactions and Updates
Just hours after the latest layoff announcements, a senior Salesforce engineer shared on X: “I trained Agentforce to handle queries, and now it’s taken my job. The irony stings.” This sentiment echoes across platforms like Reddit, where workers in r/technology report similar experiences in Oracle’s cloud unit. New reports from CNBC confirm Salesforce’s cuts may extend beyond the initial 360 roles, with unconfirmed estimates suggesting up to 500 additional positions at risk in marketing. The backlash is growing, with X users calling for tech giants to fund reskilling programs. As AI continues to reshape roles, the pressure is on companies to address the human cost of automation while maintaining their competitive edge.