The global information technology (IT) sector is currently experiencing a significant transformation marked by widespread layoffs and strategic restructuring efforts. This shift is largely driven by the rapid advancements in artificial intelligence (AI) and the imperative for companies to enhance efficiency, reduce costs, and acquire new skill sets. Major IT and tech firms worldwide, including Accenture, TCS, Google, Wipro, HCL Tech, Salesforce, and Microsoft, have announced or implemented substantial job reductions as part of these initiatives.

IT consulting giant Accenture announced the elimination of 11,000 jobs across its global workforce, a move detailed during its quarterly results announcement. The company anticipates further layoffs in the coming months as it accelerates its AI push. This decision is underpinned by an $865 million restructuring plan, which aims to counteract anticipated slower growth attributed to reduced corporate demand, partly due to federal spending restrictions. Accenture's employee business optimisation costs, primarily severance, touched $615 million in the last quarter of FY25, with an additional $250 million expected in the current quarter. In total, severance costs reached $344 million in FY25, and the company projects over $1 billion in savings from this restructuring. CEO Julie Sweet explained the strategy to analysts, stating, “We’re trying to—in a very compressed timeline where we don't have a viable path for skilling—sort of exiting people, so we can get more of the skills we need.” By the end of August, Accenture's workforce had decreased by approximately 11,000 employees from three months prior, settling at 779,000. Despite these layoffs, Accenture reported a 7 percent year-on-year increase in revenue, reaching $17.60 billion for the June-August 2025 quarter, with about 2.5 percent of this change influenced by foreign exchange fluctuations.

Beyond Accenture, numerous other prominent IT and tech companies have undertaken similar restructuring measures. India's largest IT company, Tata Consultancy Services (TCS), is reportedly cutting nearly 12,000 jobs, representing about 2% of its global workforce in the 2025-26 fiscal year, as it pivots its focus towards AI-driven restructuring. TCS also noted a marginal increase in its attrition rate to 13.8% on a last twelve months (LTM) basis for the April-June quarter of FY25-26.

Google, the global search engine giant, laid off 100 employees in design-related roles to accelerate its AI agenda, aiming to ramp up AI infrastructure while cutting costs elsewhere. While Wipro has not officially confirmed layoffs, reports suggest the company reduced 24,516 jobs in FY24-25 to improve cost efficiency and productivity, even as its headcount later rose slightly and attrition dropped to 15%. HCL Tech is reported to have cut more than 8,000 jobs in 2024, largely due to divestitures and realignments, with its attrition rate decreasing to 12.8% in the April-June quarter of FY 2025-26.

Salesforce CEO Marc Benioff confirmed in September 2025 that the cloud software company had laid off nearly 4,000 customer support staff, reducing its workforce in this area from 9,000 to 5,000 employees. This reduction is directly linked to the increasing adoption of artificial intelligence tools in customer service operations. Similarly, Microsoft reportedly cut more than 40% or nearly 4,000 jobs in its software engineering business, a move signaling potential risks for software developers in the evolving age of AI. The company announced plans for approximately 6,000 job cuts across the organization. Other firms like Cognizant laid off 3,500 employees to simplify its organizational structure and boost delivery speed in a competitive market, while IBM India reportedly cut about 1,000 job roles as it transitioned its focus to hybrid cloud and AI businesses.

The broader context for these layoffs extends beyond just AI integration. IT and tech companies globally are also facing pressure from their US business operations and concerns surrounding proposed H-1B visa fee hikes, which could impact new applicants seeking employment in the United States. Ultimately, a significant factor is the perceived ability of artificial intelligence to boost productivity and efficiency, leading some companies to prefer AI-driven solutions over expanding or maintaining a human workforce, thereby placing numerous jobs in the sector at risk.