Daijiworld Media Network – New Delhi

New Delhi, Dec 30: Rapid adoption of artificial intelligence (AI) is triggering significant disruption across India’s information technology (IT) and start-up ecosystem, leading to job cuts, workforce restructuring and growing uncertainty over the future of traditional programming and coding roles.

Industry leaders have warned that routine jobs in the IT sector may soon become obsolete. Infosys co-founder N R Narayana Murthy recently stated that modern technologies would inevitably eliminate repetitive roles. The Economic Survey 2024–25 echoed similar concerns, noting that emerging technologies pose both risks and opportunities for labour markets globally.

With companies increasingly investing in machine learning (ML) and automation, mundane tasks such as data entry and basic coding are being phased out. Firms are replacing recurring manpower costs with one-time capital investments in AI-driven systems, accelerating workforce rationalisation.

India’s largest IT services company, Tata Consultancy Services (TCS), announced plans earlier this year to reduce its workforce by around 2%, or nearly 12,000 employees. While IT unions alleged that close to 38,000 employees were terminated during the second quarter, TCS clarified that about 6,500 employees have been laid off so far.

In April, reports claimed Infosys had let go of around 800 freshers at its Mysuru campus after internal assessments, a claim denied by the company. Meanwhile, job losses have also been reported across the start-up ecosystem. Quick-commerce firm Zepto reportedly laid off 300 employees in October, taking total layoffs to nearly 1,000 this year. Ola’s AI subsidiary Krutrim also trimmed its workforce, laying off close to 200 employees in 2025 as part of strategic realignment.

According to staffing firm Xpheno, nearly 7,700 senior IT professionals lost their jobs between mid-2024 and mid-2025 due to automation, AI adoption, economic pressures and overhiring during the COVID-19 boom.

An EY study published earlier this year found that 24% of tasks in the technology sector can be fully automated, while time spent on another 42% of tasks could be significantly reduced, freeing up 8–10 hours per week for employees.

Industry experts say retrenchment is largely driven by cost optimisation enabled by falling AI costs. EY India’s The AIdea of India 2025 report noted that the cost of OpenAI’s GPT APIs has dropped by nearly 80% over the past two years, making automation increasingly attractive.

AI adoption is no longer confined to IT alone. Sectors such as banking and financial services, manufacturing, logistics and healthcare are also rapidly deploying AI solutions.

“In non-tech sectors, the impact is even more pronounced,” said Nipun Sharma, CEO of TeamLease Degree Apprenticeship. He noted that AI-driven predictive maintenance, quality inspection and supply-chain optimisation in manufacturing are creating demand for workers who can operate AI-enabled systems. “Jobs are not disappearing, but skill expectations are rising sharply,” he said.

Staffing experts say AI is reshaping roles rather than eliminating employment altogether. Sanketh Chengappa, Director at Adecco India, said over 60% of BPOs and IT services firms have implemented robotic process automation (RPA) and AI, displacing manual roles but simultaneously boosting demand for AI and ML professionals.

Sachin Alug, CEO of NLB Services, estimated that while nearly two million tech jobs could be displaced by 2030, around four million new AI-enabled roles may be created, resulting in net job growth—provided reskilling efforts keep pace.

“AI has not caused absolute job losses but has triggered a redistribution of roles,” said Sonal Arora, Country Manager at GI Group Holding. She added that new jobs increasingly require close collaboration between humans and AI, particularly in technology, financial services and consulting.

The World Economic Forum estimates that AI and related technologies will create 170 million new jobs globally by 2030, while displacing 92 million—resulting in a net gain of 78 million jobs. Experts warn that for India, the outcome will depend largely on how quickly workers can be reskilled to meet evolving industry demands.