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New Delhi: The wave of tech layoffs that began in 2023 has not slowed in 2025. Instead, it appears to be entering a new phase, driven less by pandemic-era corrections and more by strategic restructuring around artificial intelligence. Companies across e-commerce, social media, chip manufacturing, electric vehicles, and enterprise software are cutting jobs to reduce costs and redirect resources into AI tools, automation, and data infrastructure.
According to data tracked by Layoffs.fyi, more than 110,000 tech jobs have been eliminated so far in 2025. February saw the biggest single-month layoffs, and the trend has picked up again in October. Analysts say this shift signals a long-term industry transition, not a temporary correction.
Several leading tech firms announced new layoffs in October, affecting employees across functions such as sales, operations, chip equipment, and content services.
Tech executives are redirecting funding toward generative AI platforms, automation tools, and data efficiency. Many roles are being replaced by AI systems. Others are being restructured to align with AI-led business models. In many cases, employees are being laid off not due to financial distress, but due to changing skill requirements.
The trend shows a shift in priorities rather than a collapse in the tech job market. Hiring is continuing in AI development, cloud infrastructure, semiconductor design, and robotics. However, traditional roles in marketing, operations, customer support, and content moderation are being scaled down.
While the layoffs affect thousands of workers, they also reflect a major transformation in the technology sector. Companies are positioning themselves for the next growth cycle driven by AI tools and automation, even if it means short-term job losses.
Experts believe layoffs may continue into early 2026 as companies move from experimentation to large-scale AI deployment. The long-term outlook suggests a workforce that will need to rapidly adapt to AI tools, reskilling to stay relevant in a rapidly changing market.