Delhi: India’s information technology (IT) sector, long a cornerstone of the country’s economic growth and a major source of high-paying jobs, is facing a significant wave of layoffs. The recent reduction of around 20,000 jobs at Tata Consultancy Services (TCS) reflects a broader structural transformation driven by the rapid adoption of artificial intelligence (AI), automation, and advanced digital systems.
AI and machine-learning tools are increasingly performing tasks that previously required large teams of human employees. Functions such as software development, testing, customer support, and system maintenance are now being managed by AI-enabled systems, reducing the need for traditional roles. This shift has led to what is being described as “silent layoffs,” impacting mid-level employees whose skills have not kept pace with new technologies.
Companies like TCS, Infosys, Wipro, and Cognizant are moving from traditional outsourcing models to value-based digital services, creating a mismatch between workforce skills and industry requirements. This “skill gap” is emerging as the main cause of the current employment crisis, even as it increases productivity and reduces costs for firms.
Between 2023 and 2025, India’s top five IT companies have collectively cut around 50,000 jobs. Experts warn that while these layoffs are challenging, they also present an opportunity to realign workforce skills with emerging digital demands. Areas such as data science, cloud engineering, cybersecurity, and AI model development are seeing rising demand, offering new avenues for employment.
To address this challenge, industry leaders and government agencies are calling for a coordinated national reskilling initiative. Programs like TCS’s AI training, which reached over 5.5 lakh employees, can serve as a model for large-scale skill development. Educational institutions must also adapt curricula to include AI ethics, product thinking, data analysis, and creative problem-solving.
Additionally, strengthening social security for displaced employees is crucial. Initiatives like severance packages, retraining subsidies, mental health support, and digital employment insurance could mitigate the human impact of layoffs. Public-private partnerships can facilitate regional training centers, and government support for AI-driven startups can generate new employment opportunities.
Experts emphasize that technological progress must be balanced with human considerations. Companies must treat employees as partners rather than mere resources, and national policies should integrate innovation with workforce protection. India’s young and skilled IT workforce presents an opportunity to position the country as a global leader in the AI era, provided the transition is managed strategically and inclusively.
In conclusion, while layoffs in the IT sector signal disruption, they also highlight the importance of reskilling, innovation, and adaptive policies. With foresight and coordinated efforts, India can transform this period of workforce reduction into an era of opportunity and growth for its technology professionals.
