Tech Layoffs at TCS, Microsoft, Intel, Meta, Others, Likely AI Driven

Tata Consultancy Services (TCS), the largest IT company in India, is cutting its global workforce by approximately 2 per cent, which may impact around 12,000 employees.  The company maintains, however, that this decision is not a result of productivity increases linked to AI.  TCS CEO K Krithivasan recently explained to Money Control that the layoffs are occurring due to the limited possibilities for redeploying employees who do not meet current project requirements.  He mentioned that the company continues to hire and train individuals actively, but certain positions—particularly those at mid-level and senior-level—are difficult to fill.

Krithivasan elucidated that, although more than 5.5 lakh employees have received training in basic digital skills and almost 1 lakh in advanced technologies, certain senior professionals find it challenging to adapt beyond the initial levels of training.  Consequently, the company is having trouble deploying them effectively.

Related: Krutrim AI Reportedly Cuts Over 100 Jobs In Last Round Off Layoffs .

This year, Microsoft has also terminated over 15,000 employees.  Additionally, about 2,000 employees categorized as underperformers have left the company.  This occurs even as Microsoft reports robust earnings and reaches record-high stock prices.  In a memo addressed to employees, CEO Satya Nadella recognized the layoffs and expressed his understanding of the challenges this period has posed for everyone.  

He stated that restructuring is necessary to remain aligned with long-term goals, despite the company’s solid financial health, especially as Microsoft continues to invest heavily in building AI infrastructure at around $80 billion.

With plans to cut its workforce by about 24,000 employees—approximately a quarter of its total staff—Intel is implementing one of the largest reductions this year.  During the quarterly earnings update of the company, the decision was announced.  According to Lip-Bu Tan, the new CEO of Intel, the company is concentrating on becoming more streamlined and efficient after having overbuilt in areas where demand did not meet expectations.  

In the context of this change, Intel is scrapping certain factory initiatives in Germany and Poland, and relocating some operations from Costa Rica to Vietnam — affecting approximately 2,000 workers in Costa Rica by themselves.

In the meantime, Meta has implemented new layoffs in its Reality Labs division, which manages its VR and AR products, including games for its Quest headsets.  The company did not disclose precise figures, but teams involved in significant projects such as the Supernatural fitness app were impacted.  

According to Meta, the aim is to make operations more efficient and enhance concentration on upcoming mixed reality experiences.  In a separate round earlier this year, Meta had cut 5 percent of its workforce, focusing on underperforming employees.

As part of a wider initiative to cut costs and increase investment in future technologies such as AI, Japanese tech giant Panasonic has also been added to the list with plans to eliminate 10,000 jobs.  Roughly half of these cuts will occur in Japan, while the remainder will take place abroad.  CEO Yuki Kusumi stated that the company is moving away from slower segments such as TVs and certain industrial products. He expressed regret over this decision but stressed that these measures are essential for long-term growth.