Key Takeaways
- Up to 50,000 IT sector jobs could be lost by end of 2025
- AI implementation and cost optimization driving workforce reductions
- TCS and Accenture have already cut approximately 23,000 positions
- Middle-management roles with technical expertise most affected
The Indian IT sector faces significant workforce reductions with an estimated 50,000 employees likely to lose their jobs by the end of 2025, according to industry reports. This represents a doubling of layoffs compared to the previous two-year period, driven primarily by artificial intelligence implementation and business optimization efforts.
Scale of the Job Cuts
Between 2023 and 2024, approximately 25,000 IT employees were affected by layoffs. Industry projections indicate this number could reach 50,000 by December 2025. TeamLease Digital CEO Neeti Sharma has projected even higher numbers, estimating between 55,000 and 60,000 employees could be laid off due to outdated platform limitations and demand for specialized expertise.
Tata Consultancy Services (TCS) announced major workforce reductions in July, cutting 2% of its workforce affecting nearly 12,000 employees. Combined with Accenture, these two IT giants have laid off approximately 23,000 employees since July alone.
The Silent Layoff Phenomenon
Employees experiencing silent layoffs describe sudden termination notices with minimal explanation. One IT professional recalled being informed by HR that it was his last working day without prior warning. “They informed that I was not required anymore,” he said, expressing shock at the abrupt dismissal.
Another former employee described receiving a three-month grace period to find alternative employment. Many affected workers report being terminated under performance-related pretexts rather than direct layoff announcements.
Driving Factors Behind Workforce Reductions
Industry experts identify multiple factors contributing to the job cuts:
- Artificial intelligence implementation replacing engineering roles
- Cost management and business optimization pressures
- Economic uncertainty affecting client decision-making
- Shift toward digital solutions and specialized expertise
The $280 billion Indian IT sector faces challenges with higher operational costs compared to revenues, prompting organizations to restructure their workforce. Instead of direct terminations, many companies are asking employees to resign with compensation based on predetermined criteria.
Middle-management positions with technical expertise and innovative capabilities are experiencing the highest turnover rates, according to Neeti Sharma. While employees with over 25 years of experience typically receive “decent” compensation packages, those with approximately 10 years of service are often more severely affected by the restructuring.
