Massive layoffs in the Indian IT sector threaten over 50,000 jobs by the end of 2025. Leading companies like TCS and Accenture are reducing workforce amid AI adoption and changing global policies.
The Indian IT sector is bracing for a significant wave of layoffs, with estimates suggesting that more than 50,000 employees could lose their jobs by the end of this year. Major IT giants like TCS and Accenture have already announced substantial workforce reductions, signaling a troubling trend for thousands of professionals.
Rising Layoff Numbers in the IT Industry
According to recent reports, approximately 25,000 IT professionals lost their jobs between 2023 and 2024. Experts predict that this figure may double by the end of 2025. Companies are employing discreet strategies to reduce their workforce, including citing underperformance, delaying promotions, and encouraging voluntary resignations.
TCS has revealed plans to cut around 12,000 employees by March 2026, which accounts for nearly 2% of its total workforce. Similarly, Accenture has already laid off about 11,000 employees globally between June and August this year.
Expert Insights on IT Layoffs
Phil Fersht, CEO of US-based HFS Research, shared with The Times of India that several companies have quietly terminated employees this year without public announcements. Additionally, Neeti Sharma, CEO of TeamLease Digital, estimates that the total number of affected IT professionals could reach 55,000 to 60,000 by the end of 2025.
The surge in layoffs is closely tied to the rapid adoption of Artificial Intelligence (AI). Companies are increasingly relying on AI-driven technologies, leading to automation and a reduced need for large human workforces.
Why Are IT Companies Laying Off Employees?
Indian IT firms are undergoing a transformation driven by AI adoption and changing work models. This shift is not just about cost-cutting but also about strategic restructuring to stay competitive in the evolving tech landscape.
Besides AI-driven changes, other factors contributing to layoffs include geopolitical tensions, stricter US immigration policies, and the rising costs associated with H-1B visas. Firms specializing in cloud computing, data analytics, AI, and digital transformation are better positioned to navigate these changes, while traditional outsourcing companies face the brunt of disruption.
What Lies Ahead?
As the IT sector continues to evolve with technological advancements and global economic challenges, employees may face increased job insecurity. Industry experts recommend that IT professionals upskill in emerging technologies like AI, cloud, and data analytics to remain relevant in this rapidly changing environment.