Silent layoffs are becoming the new norm in India’s technology and software services industry, with as many as 35,000 jobs potentially cut during the current calendar year as companies prioritise productivity improvements in an intensely competitive environment, according to an ET report cited by Business Today.
This latest trend reflects a new phase in the restructuring of India's IT services industry, valued at over $315 billion. Companies are rationalising the workforce built up during the pandemic hiring surge after grappling with weaker business conditions over the past three years.
Estimates and Scale of Job Cuts
Staffing firm TeamLease estimates that between 10,000 and 15,000 technology professionals have already lost their jobs through so-called silent layoffs by May and projects total job losses of 25,000–35,000 for the full year, the ET report said. CIEL HR Services estimated that around 12,000 jobs have been eliminated so far in 2026 and expects the year's total to reach 18,000–21,000. If realised, cumulative job losses across 2025 and 2026 could rise to 43,000.
| Source | Jobs cut by May 2026 | Projected full-year 2026 |
|---|---|---|
| TeamLease | 10,000–15,000 | 25,000–35,000 |
| CIEL HR Services | ~12,000 | 18,000–21,000 |
Unlike last year, when Tata Consultancy Services (TCS) and global technology major Accenture publicly announced more than 23,000 job cuts worldwide, the current round is largely taking place through silent exits linked to performance reviews and skill relevance, without formal layoff announcements, the report noted.
Why This Round Differs
According to TeamLease, while 2025 was primarily about correcting excessive hiring during the pandemic, 2026 is centred on reshaping workforce structures. The current cycle differs from earlier downturns because job reductions are being driven less by slowing demand and more by productivity gains from artificial intelligence, widening skill gaps and efforts to simplify organisational structures, TeamLease said.
Although hiring recovered modestly in FY26 following around 69,000 job cuts in FY24, companies continued to remain cautious and reduced headcount in selected functions. TeamLease said the broad-based correction has largely run its course, with future workforce reductions expected to be more targeted — eliminating redundant positions, overlapping responsibilities and excessive management layers.
Impact on Major IT Firms
This shift is reflected in the combined net reduction of 7,389 employees across the five largest Indian IT companies — TCS, Infosys, HCLTech, Wipro, and Tech Mahindra — in FY26, reversing the net addition of 12,718 employees recorded in FY25. During the year, TCS reduced its workforce by 23,460 employees, while Bengaluru-based Infosys added about 5,000 people, according to the report.
Industry executives said companies across the technology sector — including IT services firms, global capability centres (GCCs) and startups — are restructuring by streamlining operations, eliminating overlapping roles and accelerating automation adoption.
Expert Perspectives
Aditya Narayan Mishra, managing director and chief executive at CIEL HR Services, said: "The workforce reductions we are seeing are mainly due to companies reshaping how they operate." He noted the current trend should be viewed as a workforce realignment rather than a broad-based decline in employment. "While layoffs continue to make headlines, they represent one part of a broader workforce transition," he said. Mishra added that even as companies reduce headcount in certain areas, they are continuing to recruit for "critical, future-ready roles."
Neeti Sharma, Chief Executive Officer of TeamLease Digital, said hiring demand is increasingly concentrated in specific skill sets as companies focus on AI and automation capabilities.
For enterprise technology decision-makers, the shift signals that AI-driven productivity gains are now a primary force in workforce restructuring, not just in IT but across industries reliant on technology talent. The emphasis on future-ready roles will likely accelerate demand for expertise in AI, automation, and digital transformation, while redundant positions face elimination.
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