Several major global technology companies — such as Amazon, Meta, Microsoft, and TCS — have recently cut thousands of jobs while simultaneously expanding investment in Artificial Intelligence systems and AI-skilled talent.
Background
- Rapid adoption of automation, cloud technology, and AI tools in business operations.
- Layoffs are not always due to machines replacing workers directly, but due to cost optimisation, business restructuring, and redeployment towards AI-focused roles.
- Companies are prioritising AI-powered growth sectors over traditional functions.
Recent Layoff Trends
Company | Workforce Action |
Amazon | ~14,000 jobs cut as part of AI-aligned restructuring |
Meta | ~600 layoffs in superintelligence division overhaul |
TCS | ~12,000 roles reduced while shifting to AI-driven functions |
Microsoft | ~4% workforce trimmed amid major AI investments |
Global trend:
- 1.12 lakh jobs cut globally across 218 firms in 2025 (so far).
- Fewer companies cutting jobs, but larger layoffs per firm — signalling structural shifts, not seasonal cuts.
AI Hiring Trends
- AI-related hiring growing sharply — especially in India (33%+), Brazil, Saudi Arabia.
- Workers with strong AI skills earn ~56% higher wages, particularly in IT services, retail, energy, and communication sectors.
- High pay indicates high value-creation potential in AI-based roles, not just talent shortage.
Investment Pattern
- Global corporate AI spending touched ~$250+ billion in 2024, a 13-fold rise over a decade.
- Major investment areas:
- Gen-AI tools
- Data centres & semiconductor hardware
- Cloud infrastructure
- Workforce re-skilling programs
Positive
- New jobs in AI, cybersecurity, cloud computing, data analysis
- Higher productivity and innovation capacity
Concerns
- Skill gaps and worker displacement
- Income inequality and job insecurity
- Pressure on governments to reskill citizens
Way Forward for India
- Strengthen digital skilling missions (Skill India, PMKVY, Digital India)
- Promote AI research, startups, and domestic chip manufacturing
- Develop reskilling support and social safety nets
- Encourage human-AI collaborative work systems
Conclusion:
AI is reshaping labour markets by shifting corporate priorities rather than replacing workers overnight.
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