Widespread AI adoption is the primary driver of tech layoffs. AI caused nearly 55,000 U.S. layoffs in 2025. Meta and Pinterest are restructuring to focus on AI. Block is cutting its staff by 40%, laying off more than 4,000 people.

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AI-driven restructuring has led to about 245,000 tech jobs being cut globally in 2025, with 70% from U.S. firms. Indian startups have laid off over 4,500 employees while pivoting to AI. TCS plans to cut around 12,000 more employees by March 2026.

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