Several firms are realigning workforces in response to AI-driven change. They are cutting roles in legacy / support functions, investing in AI and growth areas, and re-skilling or redeploying staff.
Here’s a summary of the major job cuts announced in 2025 linked to AI deployment and restructuring.
Microsoft
Microsoft cut around 9,100 jobs (≈4 percent of workforce) in July 2025, following an earlier 6,000 layoffs in May. The company said the restructuring was part of its plan to invest over $80 billion in AI infrastructure and streamline non-core units like sales, Xbox, and marketing. Many roles in traditional software and cloud support were eliminated as AI tools took over routine operations.
Intel
Intel plans to eliminate 21,000–25,000 jobs globally (15–24 percent) as it restructures operations to focus on AI chip manufacturing and foundry efficiency. The layoffs primarily impact manufacturing and support divisions. Intel said the move will enable faster innovation in AI and reduce operational costs.
Meta Platforms
Meta announced a 5 percent workforce reduction (~3,600 roles) to prioritize AI-driven innovation and core products like Reels and AI assistants. The company said it is trimming non-essential teams and middle management to fund AI investments in advertising and metaverse infrastructure.
Amazon
Amazon laid off about 10,000 HR and corporate employees (≈15 percent of HR staff) as part of an automation-focused efficiency drive. The company is deploying AI tools for recruiting, logistics optimization, and customer service — reducing the need for human-driven processes.
Accenture
Accenture cut around 11,000 jobs worldwide in its transition to become “AI-ready.” The restructuring aims to integrate AI across consulting, delivery, and IT operations. The company is simultaneously hiring in AI engineering and automation services.
IBM
IBM eliminated about 8,000 jobs, mostly from HR and administrative departments. CEO Arvind Krishna said AI is replacing repetitive HR tasks, enabling a leaner organization. IBM continues to hire for AI, hybrid cloud, and cybersecurity functions, positioning itself as an enterprise AI leader.
Salesforce
Salesforce reduced roughly 4,000 jobs, mostly in customer-support and operational roles. The company said AI assistants now handle up to 50 percent of customer interactions, leading to job redundancy. At the same time, Salesforce expanded hiring in AI-based sales and product development teams.
Workday
Workday cut 1,750 jobs (≈8.5 percent), citing a realignment toward AI-driven growth areas in cloud finance and HR software. The company said it will redeploy savings into AI product development while maintaining core customer operations.
Panasonic
Panasonic announced 10,000 global layoffs, part of a broader transformation to automate manufacturing and integrate AI into operations. The company said the cuts would streamline legacy business functions and improve efficiency in its supply chain.
Automattic
Automattic, the parent of WordPress, cut 16 percent of its workforce amid an internal productivity review. Leadership cited AI-driven automation as a factor reshaping how digital content and publishing tools operate, leading to consolidation in engineering and support roles.
Block (formerly Square)
Block cut 1,000 employees and reassigned about 200 mid-level managers. The company said its restructuring focuses on simplifying operations, with greater reliance on AI and automation in payment analytics and fraud detection.
Blue Origin
Blue Origin trimmed around 10 percent of staff (~1,000 employees) to boost efficiency in its manufacturing and launch programs. While not purely AI-driven, the restructuring supports increased automation in spacecraft design and production.
BlackRock
BlackRock reduced approximately 200 jobs, citing automation and efficiency initiatives. The world’s largest asset manager is investing heavily in AI analytics and automated trading systems, reducing demand for certain support and operations roles.
Grubhub
Grubhub laid off 500 employees (≈20 percent) as it restructured operations following financial losses. The company said AI-based automation in logistics, customer service, and analytics allowed it to reduce workforce costs and improve margins.
Sonos
Sonos announced 200 job cuts as part of a simplification plan. The company is integrating AI to enhance its smart speaker product line, but the cuts primarily targeted administrative and overlapping technical roles.
Starbucks
Starbucks removed 1,100 corporate positions across North America, part of a $1 billion cost-cutting plan. The company said AI tools are being used for workforce scheduling, demand forecasting, and supply-chain optimization, reducing the need for manual management roles.
Tata Consultancy Services (TCS)
TCS reportedly laid off up to 12,000 employees as it transitions to an AI-first IT services model. The cuts mainly affected mid- and senior-level employees, as the company replaces repetitive coding, testing, and support functions with AI automation.
SAP
SAP reduced about 1–2 percent of its global workforce, including roles in India, as part of its cloud and AI transformation program. The company said it will retrain affected employees for AI and data-related functions, reflecting a shift in enterprise software priorities.
Snorkel AI
Snorkel AI, an AI data-labeling startup, laid off 13 percent of its staff (≈31 employees) to refocus resources on core AI platforms and automation tools. The company said the downsizing helps accelerate product innovation and profitability.
Autodesk
Autodesk announced 1,350 job cuts in 2025, representing a major AI-led restructuring. The design software company said it’s integrating generative AI into products like AutoCAD and Fusion 360, automating tasks that previously required human design and testing work.
Chegg
Educational technology company Chegg plans to lay off 388 employees, representing about 45 percent of its global workforce, as part of a major restructuring to cut costs and adapt to the rapid shift toward AI-powered learning tools. The company said the rise of AI-based education platforms and declining web traffic — partly due to Google’s AI-generated summaries—has significantly reduced its revenue. Chegg, known for its textbook rentals, homework help, and tutoring services, had 1,271 employees as of December 2024. The restructuring is expected to cost between $15 million and $19 million by early 2026 and up to $16 million by late 2026.
Across these 20+ companies, over 100,000 jobs have been eliminated globally in 2025, with AI cited as a major driver. The cuts are concentrated in HR, administration, support, and mid-management — roles most affected by automation. At the same time, firms are hiring for AI engineering, product innovation, and data analytics, signaling a shift from routine to high-skill AI-centric work.
Rajani Baburajan
