TLDR: The Indian tech sector is experiencing a significant surge in ‘silent layoffs,’ with over 50,000 jobs projected to be at risk in 2025. This trend, driven by the rapid adoption of AI and automation, evolving skill demands, and global economic pressures, sees major IT firms discreetly reducing their workforce through various indirect methods, leading to widespread uncertainty among employees.
The Indian technology sector is currently undergoing a profound transformation marked by a significant increase in ‘silent layoffs,’ a discreet method of workforce reduction that is reshaping employment dynamics. Experts project that over 50,000 tech jobs could be impacted in 2025, a figure more than double the estimated 25,000 affected between 2023 and 2024.
Major Indian IT companies, including industry giants like TCS, Infosys, Tech Mahindra, and Wipro, along with multinational players such as Accenture, Cognizant, Teradata, Atos Syntel, LTI-Mindtree, and HCLTech, are reportedly restructuring their teams and quietly reducing staff. This widespread trend is driven by several interconnected factors, primarily the rapid adoption of Artificial Intelligence (AI) and automation into core processes.
Neeti Sharma, CEO of Teamlease Digital, highlighted that outdated platform limitations and the demand for specialized expertise are necessitating skill enhancement and workforce reduction. She projected that these numbers could reach 55,000-60,000 or even higher in 2025. For instance, TCS alone plans to cut around 20,000 jobs to integrate AI and automation, marking one of the largest workforce adjustments in recent years. Infosys and Tech Mahindra have collectively removed over 10,000 roles, citing evolving skill requirements, client demands, and cost optimization measures.
‘Silent layoffs’ are characterized by their opaque nature, where employees are removed from positions without formal announcements or public reporting. Companies often employ various tactics to encourage voluntary departures or force exits indirectly. These methods include performance evaluations leading to exits, reduced recruitment, postponed career advancements, contract non-renewals, and discreetly asking employees to resign or seek alternative employment.
Phil Fersht, CEO and chief analyst of US-based HFS Research, confirmed the prevalence of these ‘silent layoffs,’ stating, ‘Tens of thousands of roles have been quietly phased out across large providers this year.’ An IT professional with three years of experience shared a personal account, stating, ‘I was called by the HR one day and informed that I was not required anymore. HR said it would be my last working day and I can leave immediately. I was shocked and did not know how to react. They said it’s related to my performance and gave me a severance of three months’ salary.’
Beyond AI and automation, global economic pressures, reduced client spending, and a strategic shift towards fully billable operating models are also compelling companies to optimize costs. This discreet approach helps firms avoid negative publicity, employee unrest, and potential legal complications.
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The impact on employees is significant, leading to increased uncertainty, challenges in a saturated job market, and potential career stigma. The lack of transparency also contributes to mental and financial stress for those affected. While AI is a driver of job displacement in some areas, NITI Aayog suggests it could also generate 4 million jobs by 2030, emphasizing the need for continuous upskilling in areas like AI engineering, machine learning, data science, cloud computing, and cybersecurity.
