IT Job Cuts Shaping New Direction for India's Tech Industry in The Great Reset
Article Title: Transformative Layoffs Shape India's IT Sector in 2025
The Indian IT sector is undergoing a significant transformation, with layoffs affecting thousands of employees across the country. This change, driven by AI-driven automation, lower business demand, over-hiring during the pandemic, outdated skill sets, and internal inefficiencies, is reshaping the industry.
Oracle Corporation and TCS, two major players in the sector, have announced layoffs affecting a significant portion of their workforce. Oracle has let go of around 10% of its employees in India, while TCS is reportedly cutting 12,000 jobs, primarily impacting mid-level and senior management positions.
These layoffs are not a step-down trend in the Indian IT sector but rather a necessary correction of the past pattern. The tech industry is repositioning for the future, moving away from traditional outsourcing models towards more specialized, high-value services.
The traditional skill sets that were a guarantee of job security are no longer enough; companies want employees who can work with AI tools. The future belongs to workers who can use AI tools efficiently, and it is advised for them to be proactive and upgrade their skills.
Many IT firms over-hired during COVID-19 when demand surged, leading to a surplus workforce as growth models shift, resulting in a structural reset within the sector. Demand uncertainty from global markets and pricing pressures have forced firms to cut costs and restructure internally, shedding excess middle management and roles deemed non-profitable or outdated.
Firms realize that a large segment of employees has not kept pace with evolving tech requirements, forcing layoffs and reorientation toward efficiency and new skill demands. Companies like TCS are offering severance, insurance benefits, and outplacement support to ease transitions.
The sector transitions from large-scale manpower models to automation-driven, technology-centric delivery, optimizing costs and output. There is increased pressure on IT professionals to upgrade technical skills and adapt to AI-centric workflows.
Social and political challenges emerge regarding job security, necessitating policy innovation in labor laws and retraining programs to sustain workforce stability and India's global IT competitiveness. The next few years will determine which companies, workers, and regions can meet with success in the new reality.
The geographic spread of layoffs suggests a complex rebalancing rather than a simple decline in the tech industry. Additional pressures include cost-cutting measures, a reduction in IT budgets, uncertainties over the global economy, and strong adoption of AI automation.
Indian IT companies are investing heavily in AI capabilities, not just to automate existing services but to offer new types of solutions. The industry is poised for a significant shift, with companies fundamentally rethinking their workforce needs, not just cutting costs.
This transformation is not limited to India. In 2025, there have been 413 layoffs at tech companies globally, impacting 96,861 people. The period also wants workers to be mentally prepared for any unforeseen circumstances. Those corporations that will be able to manage this change well will come out of it stronger and with a higher ranking on the competition board.
References:
- The Economic Times
- Financial Express
- Livemint
- The Hindu BusinessLine
- The Times of India
Read also:
- Setting Up and Expanding Operations at a Soil Blending Facility
- Surveying the Scene: Legality, Drones, and American Anti-Terror Strategy
- Regional University's healthcare system strengthened through collaborative partnership with Chancellor Dr Fiona Hill
- Exploring the vanguard of eco-friendly advancements: mycorrhizal partnerships and internal plant organisms
