With the launch of two big agricultural schemes worth Rs 35,440 crore for farmers by Prime Minister Narendra Modi, major changes are also being seen in India’s IT and technology industry. The risk of “silent layoff” i.e. silent job cuts has increased in the Indian IT sector this year, in which about 50,000 jobs may be lost this year.
Tata Consultancy Services (TCS) had announced in July to lay off about 2% of its employees i.e. about 12,000 people by March 2026. Also, big companies like Accenture have also reduced more than 23,000 jobs globally under the same strategy. Instead of directly firing employees, many companies are asking them to resign, during which compensation like three months’ salary is also being offered.
IT companies are making greater use of automation and Artificial Intelligence (AI), reducing the need for humans for mid-level management and repetitive tasks. According to experts, the pyramid model is changing due to AI and companies are now giving priority to more efficient and expert teams.
About 25,000 workers are projected to be laid off between 2023 and 2024, and that number could double in 2025. These are challenging times for IT companies as they adapt their businesses to AI and digital technologies amid declining global demand, US country policy changes and rising costs.
This transformation is not a process of termination but a sign of the Indian tech industry’s restructuring for the AI era and development in a new direction, which will make the industry more competitive and sustainable in the long term.