Daijiworld Media Network – Bengaluru
Bengaluru, Oct 11: India’s IT industry is facing a wave of what experts describe as ‘silent layoffs’, potentially impacting up to 50,000 professionals by the end of 2025. The downsizing, driven by automation, artificial intelligence (AI), and sluggish business growth, has created uncertainty among employees across major firms.
According to an Economic Times report, around 25,000 IT employees lost their jobs between 2023 and 2024, and that number is expected to double this year. Companies are reportedly encouraging employees to resign voluntarily, often under the pretext of performance issues.
An IT engineer with three years of experience said, “I was called by HR and told that my services were no longer needed. They gave me three months’ salary and asked me to leave immediately.”
TCS, which earlier announced plans to cut 2% of its workforce by 2026, and Accenture, which laid off over 11,000 globally, have set off a trend across the sector. Industry experts say tens of thousands of roles are being “quietly phased out” through subtle tactics such as poor performance ratings, halted promotions, and non-renewal of contracts.
Phil Fersht, CEO of US-based HFS Research, confirmed that “tens of thousands of roles have been quietly eliminated across major IT providers this year.”
Neeti Sharma, CEO of Teamlease Digital, said the shift towards automation and AI-based operations has made many traditional roles redundant. She estimates that layoffs could reach 60,000 by 2025, with mid-level managers being the worst affected.
“As AI tools take over routine coordination and reporting, middle-management roles—once vital for supervising large teams—are becoming obsolete,” Sharma explained.
The outsourcing industry, worth over $283 billion, is now transitioning from people-heavy structures to leaner, skill-based models focused on digital expertise. Experts believe that the current wave of layoffs marks a deep structural reset for the Indian IT sector as it adapts to the AI era.
“Accenture’s move signals an industry-wide transformation,” Fersht added. “These are not just cost cuts but a redefinition of roles to align with AI and digital priorities.”