IT Sector Layoffs in India Due to AI Raise Job Loss Concerns
IT Sector Layoffs in India Due to AI: The Indian IT sector is facing large-scale layoffs as companies struggle with reduced revenues, delayed projects, and rising costs. Experts caution that AI adoption is reshaping IT jobs, leaving thousands of employees vulnerable.
Declining Revenues and Delayed Projects
In the current financial year, major IT firms have reported revenues below expectations. Project delays and postponed client billing cycles have created additional pressure. Though companies have projects in the pipeline, delays in execution are slowing revenue conversion.
TCS Job Cuts and Industry-Wide Impact
Tata Consultancy Services (TCS), one of India’s leading IT companies, announced a 2% workforce reduction, amounting to nearly 12,000 employees. Layoffs are expected to affect those on the “bench” without active projects and workers lacking updated digital skills.
Industry analysts estimate that 1–2.7 lakh IT jobs may be lost in India, with companies like Tech Mahindra and LTIMindtree already reducing staff. Rising attrition rates — voluntary resignations — have also increased by 150–200 basis points compared to last year.
IT Sector Layoffs in India Due to AI: AI Driving Workforce Restructuring
The rapid rise of Artificial Intelligence is transforming the IT industry. While AI-powered solutions create demand for new skill sets, many mid- and senior-level professionals are unable to adapt.
According to a NASSCOM report, nearly 80% of the 5.4 million IT employees in India must upgrade their digital skills by 2030 to remain employable. Failure to adapt may put lakhs of jobs at risk in the coming years.
IT Sector Layoffs in India Due to AI: Future Outlook
Experts believe that workforce restructuring is just beginning. AI-driven transformation could lead to more layoffs in traditional IT roles while simultaneously creating opportunities for AI specialists, data scientists, and digital transformation experts.
IT Sector Layoffs in India Due to AI: FAQs
Q1. Why are IT companies in India laying off employees?
IT firms face declining revenues, delayed projects, and AI-driven automation, forcing them to restructure and cut staff.
Q2. How many jobs are at risk in India’s IT sector due to AI?
Industry experts estimate between 1 lakh to 2.7 lakh jobs may be lost in the near future.
Q3. What skills are essential for IT professionals to survive AI disruption?
Employees must upskill in AI, machine learning, cloud computing, and digital transformation technologies to remain relevant.
IT Sector Layoffs in India Due to AI: Conclusion
The wave of IT sector layoffs in India due to AI highlights the urgent need for upskilling and adaptation. While automation is reshaping traditional IT roles, employees who embrace AI and digital skills will remain in demand. Experts stress that proactive reskilling is the only way to safeguard careers in this evolving landscape.
Disclaimer: This article provides general information on IT layoffs and AI impact. It is not financial or career advice. Readers should consult career experts or official industry reports for professional guidance.
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