Key Points
- Intel to slash 25,000 jobs (15% of workforce) by end-2025 as part of deep restructuring.
- TCS announces 12,000 layoffs 2% of staff citing weak demand and rapid AI adoption.
- Microsoft to trim over 15,000 jobs worldwide as AI investments and automation rise.
- Infosys cuts employee bonuses and signals pay hike delays amid profit declines.
- Over 10 million Indian youth now vie for scarce government jobs as IT sector turmoil grows.
- Industry experts warn of wider tech sector pain and new barriers for job-seeking youth.
New Delhi: A wave of mass layoffs is shaking the global Information Technology (IT) sector in 2025, unleashing fresh anxiety for millions of young job seekers. As deepening recessionary trends rock tech giants and startups, industry bellwethers are slashing thousands of roles, citing falling demand, automation, and the rapid shift towards Artificial Intelligence (AI).
Intel, one of the world’s largest chipmakers, is making the most dramatic move: the company will cut approximately 25,000 jobs around 15% of its workforce by the end of 2025. CEO Lip-Bu Tan, in memos to staff, stressed that all investments must now make “economic sense,” announcing the cancellation of major semiconductor factory projects in Germany and Poland, the closure of its assembly unit in Costa Rica, and a slowdown of construction for its $28 billion Ohio chip facility.
Tata Consultancy Services (TCS), India’s largest IT firm, will dismiss more than 12,000 employees (2% of its global workforce) through phased job cuts in FY2026 a move pinned on falling enterprise spending and accelerated AI-driven automation. The move, the largest retrenchment in the firm’s history, mirrors a sector-wide slowdown as competitors like Infosys and Wipro freeze hiring and defer salary increases.
Meanwhile, Microsoft has announced layoffs impacting over 15,000 workers in 2025, especially in sales, marketing, and its Xbox division, as part of a broader restructuring to “simplify” and reorient product lines. These cuts follow big tech trends, with industry analysts estimating more than 80,000 positions lost globally this year so far. Microsoft, Meta, and Google are all pivoting investment towards AI, often at the expense of human jobs.
Infosys, another Indian IT major, has warned of reduced performance bonuses due to an 11.7% net profit slump and flagged delayed or reduced salary hikes for much of its workforce. The company is treading cautiously amid client budget cuts and deferred migration projects.
The Indian Youth Squeeze
With the tech sector downturn, over 1 crore (10 million) young Indians have intensified their race for government jobs, seeking stable employment amid private sector turbulence. Competition for limited posts is now fiercer than ever, as traditional IT roles dry up and the average time for tech graduates to secure jobs extends. Surveys suggest nearly 36% of Indian youth see unemployment and underemployment as their most critical issues now aggravated by tech layoffs, automation, and skill mismatches.
Mental health concerns are also mounting, as prolonged career instability, escalating competition, and shrinking corporate placements pile pressure onto the new generation.
What’s Next?
While some industry forecasts hint at a recovery in IT hiring in late 2025, particularly in high-demand AI, data analytics, and cybersecurity roles, near-term prospects remain grim for non-specialist candidates. Experts urge policymakers to ramp up upskilling programs, align higher education with industry needs, and expand vocational and entrepreneurial support.
In the meantime, government jobs remain a coveted option but with more applicants chasing fewer seats, the crisis in tech is now echoing across the nation’s broader youth employment landscape.
This unfolding story reflects seismic shifts in technology and employment trends, with deep implications for India’s youth and its future workforce.
