- Major layoffs in the tech sector highlight AI’s growing role in business transformation.
- Telecom companies are also adopting automation, leading to job reductions in customer-facing roles.
What happened: AI-driven layoffs reshape tech and telecom workforce
The second half of 2025 has seen a wave of layoffs across global tech and telecom sectors, as companies adjust their operations to integrate artificial intelligence. In July, major firms such as Microsoft, Intel, and Amazon Web Services (AWS) announced significant job cuts, reflecting a larger industry trend towards automation.
Microsoft revealed plans to eliminate around 9,000 roles, approximately 4% of its workforce, as it shifts focus towards AI and cloud infrastructure. Intel followed suit, announcing a reduction of up to 10,000 jobs, targeting its manufacturing division in a bid to meet a 20% workforce reduction under its new CEO. AWS also made cuts, primarily in customer success teams, as it pivots to prioritising AI in its cloud services.
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Why it’s important
These layoffs mark a profound shift in the way industries are approaching labour. Unlike the pandemic-era cuts driven by uncertainty, the current restructuring reflects a strategic move towards leaner, more automated operations. AI is now central to the long-term goals of companies seeking to cut costs while maintaining innovation.
While the telecoms sector has not seen the same scale of cuts, companies such as Telstra and BT Group are following suit. Telstra reduced its workforce by 550 roles, and BT Group is on track to eliminate up to 55,000 positions by the end of the decade. AI-powered customer service tools, such as BT’s virtual assistant “Aimee,” are increasingly taking on tasks once performed by human workers. These moves highlight how automation is not only reshaping back-office operations but also altering frontline service roles.
As AI continues to transform these industries, companies must balance the need for innovation with the pressure to reduce operational costs. The result could be a permanent reshaping of the workforce in both tech and telecom sectors, as automation takes centre stage.
