According to reports, over 50,000 tech jobs were slashed in the first half of 2025.
Microsoft CEO Satya Nadella admitted that 20% to 30% of the code in their repositories is now AI-generated.
Education platforms like Chegg also laid off 248 workers, 22% of its staff in the wave of automation.
Everyone’s fears about AI have come true! The beginning of automation and AI advancement raised doubts about how it would impact jobs. The supporters pointed out that although some job profiles will become obsolete, new roles will emerge to make up for the loss.
Now, as big tech layoffs continue to break records in 2025, it’s clear that the critics’ doubts were not unfounded. According to reports, over 50,000 tech jobs were slashed in the first half of 2025 alone. So, AI has not just impacted a few employees, it has negatively affected the whole tech industry.
One of the most high-profile examples is Microsoft. The company announced layoff of around 6,000 employees, about 3% of its global workforce as of May 13. A WARN notice in Washington State revealed nearly 2,000 of those job cuts are local, including 475 remote positions. Notably, one of the laid-off workers was a veteran developer who significantly enhanced TypeScript's performance.
“After 18 years at Microsoft, with roughly a decade working on TypeScript, I have unfortunately been let go,” the developer posted on X. It reflected the emotional toll of being replaced during an era of aggressive AI transition.
While Microsoft declined to comment, analysts argue the layoffs are less about current AI replacing humans and more about reallocating resources. Wes Roth, commenting on X, stated that Microsoft plans to invest $80 billion in AI this fiscal year. “This isn’t about AI replacing humans yet, it’s about restructuring to fund AI initiatives,” he said. Roth warned that this model could drive more than 10,000 job cuts annually if it continues.
Industry experts like Deedy Das of Menlo Ventures blame the rising costs of generative AI infrastructure as the main driver for job cuts and a reduction in new hires. At the same time, AI’s role in software development is growing.
Microsoft CEO Satya Nadella admitted that 20% to 30% of the code in their repositories is now AI-generated. Das raised a sobering question, “Is this the new normal?”, suggesting that Big Tech may now just use AI to get the work done with leaner teams.
Google and Meta are similarly trimming staff while pouring funds into AI. Google has reduced headcount in departments like Global Business, Platforms, and Devices. Meta cut 3,600 employees, or 5% of its workforce, in what it calls performance-based restructuring. This highlights a broader industry shift, from people to machines, and from expansion to efficiency.
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At PwC, 1,500 US employees were let go as part of post-pandemic restructuring and automation efforts. The manner of termination has left many feeling disappointed. “They spend weeks on interviews to hire you, but fire you in a call that lasts minutes,” a former employee told AIM.
IBM has taken a different tone. After replacing 200 HR roles with AI, CEO Arvind Krishna claimed the company has used those savings to increase total headcount. “Very few roles will be completely replaced,” added HR chief Nickle LaMoreaux. Thus, explaining that AI is best suited for routine tasks rather than total role substitution.
The impact of AI can be seen in education technology as well. Chegg laid off 248 workers, 22% of its staff, as users increasingly turn to AI platforms like ChatGPT. Duolingo is also reducing human contractors while expanding its language offerings, largely powered by AI.
Customer service isn’t spared either. Klarna replaced many support roles with AI. However, the platform quickly backtracked as customer satisfaction dropped. CEO Sebastian Siemiatkowski conceded that a full switch to AI was premature.
Whether AI is truly replacing jobs or is just a convenient rationale for cost-cutting remais to be seen. While automation is certainly transforming workflows, in many cases it appears companies are using AI as a strategic shield. They are using it as a way to justify trimming workforces under the guise of future-readiness.
What remains indisputable is AI adoption’s effect on real human lives. The promise of productivity may be real, but so is the pain of displacement. For now, the tech industry is moving ahead with the idea, and thousands of workers are paying the price.
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