About 25,000 employees were laid off in 2 years.
India’s tech industry is facing the situation of “silent layoff” on a large scale this year. A media report says that by the end of 2025, more than 50,000 people may lose their jobs. This year, many companies have already done large-scale layoffs and some are doing so. This step of the companies has worried the tech professionals.
Tata Consultancy Services (TCS) had announced in July that it would lay off about 2% of its employees i.e. about 12,000 people by March 2026, but not only TCS, but many big and small tech companies are asking employees to quietly resign or find another job. It is estimated that about 25,000 workers will be laid off between 2023 and 2024 and this number could double this year.
Professional told his sad experience
While sharing his experience in the report, an IT professional said that one day HR called me and said that I am no longer needed. He told that today is my last day and I can leave immediately. He said that it was a performance related matter and he was fired after giving three months’ salary. Similarly, some companies are doing this process slowly and secretly. An employee said, my manager told me that I am on the list of people who are being asked by the company to find another job. I was given three months time.
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Companies are increasing the use of AI
Experts believe that companies are increasing the use of AI and the expansion of their business is decreasing. This is why companies are reducing additional employees. AI is automating many repetitive engineering tasks, reducing the need for human work force. TCS and Accenture together have reduced more than 23,000 jobs globally. Accenture laid off 11,000 employees between June and August as part of a $865 million cost-cutting plan.
These companies set the trend
In some big IT companies, laptops and accounts of about 300 employees are being closed every day. Experts say that the steps taken by TCS and Accenture have now set a trend for other companies too, so that they can reduce expenses and rely more on AI and digital tools. Instead of firing them directly, companies are asking employees to resign, in return they are giving compensation as per the formula. For a long time, Indian IT companies were working on the pyramid model, where management was created in many layers to supervise new people, but now AI and automation have made this model obsolete.