Technology companies around the world are seeing a wave of layoffs as they accelerate investment in Artificial Intelligence and restructure to align with new business models. In 2025 alone, over 112,000 tech jobs have been lost across more than 200 firms. 
The impact is not purely from direct automation or AI-driven displacement, but rather from companies cutting layers, realigning talent toward AI-first roles, and trimming costs to support large capital investments in AI infrastructure. 
For example, one firm reported that though AI will raise productivity significantly, the unemployment uptick is expected to be modest—around a half-percentage-point in the U.S. during this transition.
The message for employees: even if your role isn’t being replaced by a machine today, the evolving structure means companies will increasingly favour agility, AI fluency and cost discipline. As tech firms gear up for an AI-driven future, its human capital is being reshaped in real time.