Indian IT Industry Braces for Change as Job Cuts Surge Amid AI Adoption
The Indian IT industry is experiencing significant changes, with major companies announcing job cuts and restructuring. While the future of global specialized offices in India remains uncertain, the sector is at a turning point due to AI adoption and shifting demand.
In recent years, several multinational corporations have reduced their workforce in India. Accenture led the way with 11,000 job cuts, including a substantial number in India, aiming to reinvest in AI and digital transformation. Other companies followed suit: TCS trimmed 12,000 roles, Infosys laid off 25,994, Wipro removed 24,516, and Tech Mahindra cut 10,669 positions. Oracle India, IBM, Capgemini, and HCLTech also contributed to the job losses. The trend is global, with tech giants like Microsoft, Intel, Salesforce, and SAP also announcing thousands of job cuts in 2024-25.
These cuts are attributed to companies reshaping themselves for AI, cloud, and product-focused services. However, analysts warn that the story runs deeper. Cooling global demand, automation replacing repetitive tasks, and lower-cost hubs taking over simpler services are also contributing factors. NASSCOM has sounded the alarm, warning that the sector is at a turning point and that large-scale reskilling is necessary to mitigate potential job losses. Despite these challenges, India's IT and ITeS exports are projected to reach USD 224 billion in 2024-25, accounting for 27% of total estimated exports.
Thousands of IT employees in India are currently out of work due to these layoffs. As the industry evolves, it is crucial for companies, the government, and employees to work together to facilitate reskilling and upskilling programs. This will help the sector adapt to the changing landscape and ensure its continued growth and competitiveness.
