Indian IT sector layoffs: Which jobs are facing pressure & which skills are in demand?
The Indian IT sector is undergoing a structural shift as companies prioritize AI-related skills over traditional roles, leading to targeted layoffs and slower hiring. While large-scale layoffs have subsided, firms are increasingly focusing on performance management and selective backfilling.
Why it matters
This shift reflects the broader global impact of AI on labor markets and the changing requirements for the workforce in the technology sector.
At a time when layoffs in the IT sector globally grab headlines every few weeks, what’s happening in Indian IT this year? The Indian IT jobs market is going through a shift that is increasingly more structural than cyclical - new jobs are emerging, while some of the old positions and skills are becoming redundant with the advent of artificial intelligence.AI is not just making some jobs obsolete, it is also forcing firms to adapt their business models as the demand for their traditional services faces disruption.In FY27, hiring is expected to remain subdued, while attrition is increasingly being backfilled selectively rather than one-for-one.At the same time, companies are cutting some mid-career and routine roles while continuing to hire specialist freshers and AI-related experts.Employees leaving a company are no longer necessarily being replaced on a one-for-one basis.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in