AI & Automation Fuel Continued Tech Layoffs Across Microsoft, Intel & Beyond

By Cortex Hub Editorial | July 29, 2025

The year 2025 has been a turbulent one in tech employment. As major players like Microsoft, Intel, and others invest heavily in AI and automation, they're also cutting thousands of jobs—even during periods of strong profitability.

 1. Microsoft Lays Off ~9,000 Employees (≈4% of Workforce)

In July 2025, Microsoft initiated a second round of layoffs, slashing around 4% of its global staff—approximately 9,000 employees—on top of earlier reductions announced in May. Despite posting record profits (roughly B over three fiscal quarters) and committing B to AI infrastructure, CEO Satya Nadella defended the move as part of a broader restructuring strategy aimed at agility and efficiency. Nadella described the move as “the enigma of success,” signaling more potential cuts ahead as Microsoft shifts resources toward AI-centric rolesReuters Business Insider Windows Central .

 2. Intel to Slash 15–20% of Workforce Amid Restructuring

Intel announced targets to reduce its workforce by 15–20%, shrinking headcount from about 96,400 employees to roughly 75,000 by year-end. The cuts are part of CEO Lip-Bu Tan’s aggressive cost-restraint strategy, including halting planned mega-fabs in Europe and consolidating operations across regions. Management layers are being significantly reduced, with nearly 50% of middle management roles eliminated thus farReuters Reuters Reuters Reuters .
Analysts note layoffs already exceed 12,000 roles across multiple U.S. locations, including major chip plants in Oregon, Texas, California, and ArizonaTom's Hardware TechCrunch Business Insider .

 3. Broader Industry Impact — Over 94,000 Tech Jobs Cut Globally

Data from multiple layoff trackers suggests that more than 94,000 tech workers have been affected globally by mid-2025, with at least 80,000 in the U.S. alone—across 159 companies including Microsoft, Intel, Indeed, Glassdoor, and othersFast Company Final Round AI Moneycontrol .
This pace equals roughly 627 tech job cuts per day and represents nearly half of all tech layoffs in 2024, illustrating a rapid acceleration driven primarily by cost-saving automation and strategic refocus toward AIFinal Round AI Fast Company .

 4. Industry Shift: Layoffs Amid Hiring for AI Roles

Despite headcount reductions, companies are aggressively hiring for AI talent—including roles in data science, machine learning, and AI research infrastructure. Firms like Meta, Google, Microsoft, and Amazon are reinforcing core teams while cutting less strategic functions. This paradox reflects a strategic realignment toward specialized technical expertise over traditional operational rolesBusiness Insider .

💡 Key Takeaways

• 🔄 Tech leaders are repositioning staff to prioritize AI engineering, infrastructure, and innovation over legacy roles.
• ⚠️ Despite strong financial performance, layoffs highlight the human and ethical cost behind automation and AI expansion.
• 🌍 The long-term impact may ripple across real estate, workforce retraining needs, and emerging job roles, as developers and high-skill technologists flourish alongside automation.

Cortex Hub Verdict:
Tech giants are reshaping their workforce with surgical precision—cutting bulk roles while doubling down on innovative, AI-first talent. The broader ecosystem will need to adapt fast — from policymakers and education systems to workers seeking reskilling in emerging domains like AI safety, DevOps, and cybersecurity.