Tech Layoffs Surge in 2025: Microsoft, Intel, IBM Among Major Companies Slashing Jobs Amid AI Restructuring
Microsoft: Major Cuts in Gaming and Cloud
Microsoft has confirmed one of its most significant layoffs this year, impacting 9,100 employees — about 4% of its global workforce. The cuts are hitting the Xbox and gaming units particularly hard. According to Xbox chief Phil Spencer, the company is 'ending or decreasing work in certain areas' to prioritize strategic growth. Additionally, King, the Candy Crush developer, is letting go of around 200 staff, Bloomberg reported.
This follows earlier layoffs in June, where Microsoft reduced 305 roles. Over 6,000 positions have already been eliminated this year, with reports from Business Insider stating that employees were given immediate system access termination and, in some cases, denied severance or continued healthcare coverage.
These layoffs continue a trend from 2024, where nearly 1,900 Activision Blizzard employees were let go, alongside cuts in Azure, HoloLens, and Xbox teams.
Intel: Deep Cuts and Structural Overhaul
Intel, under the leadership of new CEO Lip-Bu Tan, is undertaking an aggressive internal overhaul. This month, 107 roles will be eliminated at its Santa Clara headquarters. The company has also decided to shut down its automotive chip division in Germany, nearly wiping out the entire team.
More drastic changes are expected, with insiders suggesting up to 20% of the global workforce could be laid off — including senior engineers and executive roles. Tan emphasized a shift to leaner teams and noted, 'Intel must stop tying leadership success to large headcounts and start empowering smaller, more focused teams.'
Amazon: Multiple Waves of Job Cuts
Amazon is also continuing its workforce reduction. Its most recent layoffs affected staff in its Books business — including Kindle and Goodreads — impacting fewer than 100 employees. But this marks the fourth round of cuts in 2025, affecting departments like Devices & Services, Wondery, and Communications.
Looking ahead, Financial Express reports that Amazon may cut around 14,000 managerial roles globally — nearly 13% of its leadership — as part of broader cost-saving efforts.
IBM: Automation Takes Over HR
IBM's layoffs in 2025 amount to around 8,000 jobs, largely from its Human Resources department. AI-driven automation has taken center stage at the company, replacing roles that previously involved routine tasks. In a recent move, IBM replaced 200 HR jobs with AI systems designed to handle employee queries, internal documentation, and data processing.
Other Companies Following Suit
Google has trimmed teams within its Platforms and Devices unit, following earlier layoffs in Cloud and HR. Meta started the year by removing 5% of its staff, targeting "low performers." Additional cuts followed in its Reality Labs division.
Outside the big players, the downsizing trend spans the industry:
Infosys terminated 240 entry-level employees over failed internal assessments.
Canva laid off technical writers in favor of AI-generated content.
HP, Blue Origin, Siemens, Match Group, and CrowdStrike have all made significant cuts.
Why the Surge?
Several factors are driving these layoffs: inflation, high interest rates, reduced spending, and a shift toward automation and AI. While roles are being slashed, many firms continue to hire in AI and emerging tech — pointing to a dramatic redefinition of the industry's workforce.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
10 minutes ago
- Economic Times
PS5 exclusive Helldivers 2 is coming to Xbox consoles on August 26. Check details
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Helldivers 2 is officially releasing on Xbox Series S and S consoles on 26 August, making it the first time a PlayStation-published title arrives on Xbox. Helldivers 2 is officially getting crossplay on Xbox, meaning you'll be able to squad up with PS5 and PC players as an Xbox Wire post, Microsoft announced the news that Helldivers 2 would be coming to Xbox Series consoles on the same day as Gears of War: Reloaded comes to PlayStation 5.'We know gamers have been asking for this for some time and we are so excited to bring more Helldivers into our game," the game director for Helldivers 2, Mikael Erikkson said. "We have so much more in store for the future months and years – and the more players we have the more stories we can tell! The fight for Super Earth has only just begun.'Helldivers 2 on Xbox Series X|S will also support crossplay, so those on Xbox, PS5 and PC can all play together in spite of being on different platforms. According to a report in The Shortcut, this is probably for the first time that Sony has released a PlayStation Studios published title on Xbox consoles. Like its PC and PlayStation 5 counterparts, Helldivers 2 will be available in two editions: Standard and Super latter gets you an exclusive in-game tag that you can show off, an extra Premium Warbond, an extra piece of armour, a weapon and most importantly, the ability to practice Strategems on your ship. The last perk is handy because most of the powerful Strategems, like the Orbital Laser and 380 mm cannons, require complex, lightning-quick inputs in the heat of battle.
Time of India
10 minutes ago
- Time of India
Consumer group slams Microsoft for leaving Windows 10 users stuck without options
Microsoft is ending support for Windows 10 in October 2025. After that, users won't get security updates unless they pay or pick special options. One option Microsoft gave is to pay $30 for one more year of security updates, till October is a first-time offer for regular users, and not everyone is happy about it, as mentioned in the report by TechRadar. Now, Microsoft added two new ways to avoid paying $30: Use the Windows Backup app to save your data to OneDrive. Or use 1,000 Microsoft Rewards points instead of cash. But the Public Interest Research Group (PIRG) says that's not good enough. PIRG fights against tech waste and supports longer product life, according to the report. Many old PCs can't upgrade to Windows 11 PIRG's Lucas Rockett Gutterman says 400 million PCs can't upgrade to Windows 11. These older PCs will be 'junked' just because they don't meet Windows 11's strict hardware rules. Gutterman believes Microsoft should do more, like give longer support for Windows 10 automatically or make Windows 11 work on older PCs, as per the report by TechRadar. ALSO READ: Trump brags about planting Elon Musk drug abuse story in NYT — 'I made that happen' He also said most people feel confused and frustrated. 'Users feel yanked around,' and these updates won't fix the bigger problem. Tech expert Darren Allan thinks adding the Backup app option is a positive step. But it's still not enough to solve the long-term problem, according to the reports. Live Events Experts say one year of support isn't enough He points out businesses get 3 years of extra updates, while consumers only get one. That's unfair, especially with so many PCs still working fine. He suggests Microsoft should think about giving 2–3 more years of updates to consumers. Even if ads were added in return, it might be worth it, according to the report by TechRadar. The bigger issue is preventing e-waste, says both PIRG and Darren Allan. Millions of devices could end up in landfills even though they still work well. Conclusion: PIRG and experts agree Microsoft must take more responsibility. A single year of support and minor options aren't enough to stop a major tech waste crisis, as per the reports. FAQs Q1. What will happen to Windows 10 after October 2025? Microsoft will stop free security updates for Windows 10 after October 2025, unless users pay or choose new options. Q2. Can old PCs upgrade to Windows 11? Most older PCs can't upgrade to Windows 11 due to strict hardware rules set by Microsoft.
&w=3840&q=100)
Business Standard
27 minutes ago
- Business Standard
With $3.92 trn valuation, Nvidia on track to become most valuable company
Nvidia hit a market value of $3.92 trillion on Thursday, briefly putting it on track to become the most valuable company in history, as Wall Street doubled down on optimism about AI. Shares of the leading designer of high-end AI chips rose as much as 2.4 per cent to $160.98 in morning trading, giving the company a higher market capitalization than Apple's record closing value of $3.915 trillion on December 26, 2024. The shares were last up 1.5 per cent at $159.60, leaving Nvidia's stock market value at $3.89 trillion, just short of Apple's record. Nvidia's newest chips have made gains in training the largest artificial-intelligence models, fueling demand for products by the Santa Clara, California, company. Microsoft is currently the second-most valuable company on Wall Street, with a market capitalization of $3.7 trillion as its shares rose 1.7 per cent to $499.56. Apple rose 0.8 per cent, giving it a market value of $3.19 trillion, in third place. A race among Microsoft, Meta Platforms , Alphabet and Tesla to build AI data centers and dominate the emerging technology has fueled insatiable demand for Nvidia's high-end processors. "When the first company crossed a trillion dollars, it was amazing. And now you're talking four trillion, which is just incredible. It tells you that there's this huge rush with AI spending and everybody's chasing it right now," said Joe Saluzzi, co-manager of trading at Themis Trading. The stock market value of Nvidia, whose core technology was developed to power video games, has increased nearly eight-fold over the past four years, from $500 billion in 2021 to now near $4 trillion. Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data. The tech company also exceeds the total value of all publicly listed companies in the United Kingdom. Nvidia recently traded at about 32 times analysts' expected earnings for the next 12 months, below its average of about 41 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains. The company's stock has now rebounded more than 68 per cent from its recent closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations that the White House will cement trade deals to soften Trump's tariffs. Nvidia's swelling market capitalization underscores Wall Street's big bets on the proliferation of generative AI technology, with the chipmaker's hardware serving as the foundation. The sharp increases in the shares of Nvidia and other Wall Street heavyweights have left people who save for their retirements through widely used S&P 500 index funds heavily exposed to the future of AI technology. Nvidia now accounts for 7 per cent of the S&P 500. Nvidia, Microsoft, Apple, Amazon and Alphabet together make up 28 per cent of the index. "I strongly believe that AI is a greatly productive tool, but I am fairly sure that the current delivery of AI via large language models and large reasoning models are unlikely to live up to the hype," cautioned Kim Forrest, chief investment officer at Bokeh Capital Partners. Co-founded in 1993 by CEO Jensen Huang, Nvidia has evolved from a niche company popular among video game enthusiasts into Wall Street's barometer for the AI industry. The stock's recent rally comes after a slow first half of the year, when investor optimism about AI took a back seat to worries about tariffs and Trump's trade dispute with Beijing. Chinese startup DeepSeek in January triggered a selloff in global equities markets with a cut-price AI model that outperformed many Western competitors and sparked speculation that companies might spend less on high-end processors. In November of last year, Nvidia took over the spot on the Dow Jones Industrial Average formerly occupied by chipmaker Intel, reflecting a major shift in the semiconductor industry toward AI-linked development and the graphics processing hardware pioneered by Nvidia.
