July 2025 has seen the very best variety of layoffs lately. From Microsoft to Intel, quite a few tech giants introduced sweeping layoffs. Whereas the rising adoption of synthetic intelligence (AI) instruments has been partially blamed, organisations attributed their job cuts to ongoing organisational restructuring and efforts to foster “leaner” groups throughout the board. This yr, to this point, July has witnessed essentially the most layoffs, with 26 firms sacking as many as 24,545 staff.
The month started with Microsoft asserting that it was shedding almost 4 per cent of its world workforce throughout groups and position varieties. These job cuts are mentioned to have impacted Microsoft employees throughout geographies. In lower than a fortnight, one other tech main, Intel, introduced that it was shedding greater than 5,000 staff throughout 4 states within the US. Nearer to dwelling, Tata Consultancy Companies (TCS) introduced that it was sacking over 12,000 of its employees.
TCS shocker
Whereas these job cuts in July largely impacted the workforce within the US, on July 27, TCS claimed that it might be axing two per cent of its world workforce, which might spell job loss for over 12,000 staff. The announcement by TCS comes at a time when the corporate has been battling allegations of compelled resignations following its new “bench coverage” that restricted an worker’s bench length to 35 days yearly.
Bench often refers back to the time when an worker just isn’t actively assigned to a shopper mission however stays on an organization’s payroll. Based mostly on TCS’ bench coverage, staff had been anticipated to spend 4 to 6 hours each day upskilling themselves by way of inside platforms with strict work from the workplace. Specialists claimed that the coverage places the onus on staff to proactively search new initiatives by way of the Useful resource Administration Group. Reportedly, these lengthy durations with out allocation may probably affect their compensation, progress, employment continuity, and different alternatives.
In response to the job cuts, TCS claimed that it’s on a journey to turn out to be a future-ready organisation. Their imaginative and prescient consists of strategic initiatives on a number of fronts, investments in new-tech areas, getting into new markets, deploying AI at scale, creating next-gen infrastructure, and realigning their workforce mannequin.
Organisational realignment
Microsoft, which introduced its layoffs on the second day of its 2026 fiscal yr, asserted that it continues to implement organisational adjustments essential to finest place itself and groups for fulfillment in a dynamic market. This was not the primary time this yr that the Redmond-based tech big was asserting job cuts.
In January, the corporate introduced it was shedding lower than one per cent of its employees based mostly on efficiency; in Could, it minimize over 6,000 jobs and 300 extra in June. That is the most important layoff by Microsoft since 2023, when it laid off over 10,000 of its employees. Microsoft is reportedly wanting in direction of decreasing the layers of center managers between prime executives and particular person contributors.
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Intel’s large wipeout
One other notable growth was Intel’s resolution to put off over 5,000 of its workforce throughout 4 states within the US. The layoffs by Intel weren’t simply restricted to the US; some reviews even instructed that the corporate was sacking employees from its department in Israel.
Within the US, a lot of the layoffs had been reported from California and Oregon. Intel mentioned that it was taking steps to turn out to be a leaner, sooner, and extra environment friendly firm. CEO Lip-Bu Tan, after his takeover, has been prioritising Intel’s core merchandise for a brand new period of computing that’s being outlined by AI.
AI-focussed job cuts
On July 10, Certainly and Glassdoor mentioned that they had been chopping about 1,300 jobs to maneuver in direction of AI. The businesses mentioned that these cuts will affect their workforce within the US, in groups similar to analysis growth, individuals, and sustainability. Whereas the corporate didn’t give any particular motive for the layoffs, in his memo CEO Hiyasuki Deko Idekoba mentioned that AI is altering the world and that there was a have to adapt by making certain that the corporate’s merchandise ship really nice experiences.