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India's IT Giants: Workforce Cuts Amid Shift to AI

10/21/2025

46 4 Full Breakdown

Summary

Story summary

In Q2 FY2026, India's top six IT firms posted a net gain of 952 employees, down 77% from the prior quarter.
Tata Consultancy Services accounted for most of the decline, shedding 19,755 employees.
Infosys and HCL Technologies increased headcount, with Infosys adding over 12,000 freshers.
Tata Consultancy Services is restructuring to build a future-ready talent model focused on AI capabilities, reflecting a broader shift toward fresher hiring.

History

Historical Context

The dot-com bubble burst in 2001 led to significant layoffs in India's tech sector, with companies like Tata Consultancy Services and Infosys facing a 50% drop in venture capital funding. This period of restructuring echoes current trends, as Tata Consultancy Services' recent reduction of 19,755 employees reflects the industry's shift towards AI-driven models, highlighting the ongoing evolution of the IT workforce.

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Story summary

In Q2 FY2026, India's top six IT firms posted a net gain of 952 employees, down 77% from the prior quarter.
Tata Consultancy Services accounted for most of the decline, shedding 19,755 employees.
Infosys and HCL Technologies increased headcount, with Infosys adding over 12,000 freshers.
Tata Consultancy Services is restructuring to build a future-ready talent model focused on AI capabilities, reflecting a broader shift toward fresher hiring.

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