Full Breakdown
Job Cuts and Hiring Trends in India's IT Sector
10/21/2025, 12:05:26 PM
Overview of Employment Trends in Indian IT
In the second quarter of fiscal year 2026 (Q2FY26), India's top six IT companies reported a net addition of only 952 employees, marking a 77% decrease compared to the previous quarter. This decline was primarily driven by Tata Consultancy Services (TCS), which recorded a significant reduction of 19,755 employees, its largest cut since going public in 2004. In contrast, the other five major firms—Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree—collectively added over 20,000 employees during the same period.
Key Figures in the Employment Landscape
TCS's Chief Human Resource Officer, Sudeep Kunnumal, indicated that the layoffs were part of a strategic restructuring aimed at creating a "future-ready talent model." This involved the involuntary release of approximately 6,000 employees, representing about 1% of its workforce. Meanwhile, Infosys added over 8,000 employees, with plans to onboard nearly 20,000 freshers by the end of the fiscal year. HCLTech and Wipro also reported increases in their headcounts, with HCLTech hiring over 5,000 freshers.
Industry Context and Strategic Shifts
Experts attribute the contrasting employment trends to a broader reengineering within the IT industry. Neeti Sharma, CEO of TeamLease Digital, noted that companies are restructuring middle management while simultaneously ramping up hiring for new projects. The need to balance legacy technology maintenance with investments in artificial intelligence (AI) and automation is prompting firms to recalibrate their workforce strategies.
Wipro's Chief Human Resource Officer, Saurabh Govil, highlighted a shift from a "hire and train" model to a "train and hire" approach, emphasizing the importance of preparing freshers before they join the company. This strategy aims to enhance the deployment speed of new hires on live projects.
Criticism and Concerns
Despite the positive hiring trends among some firms, the significant layoffs at TCS have raised concerns about the overall health of the IT sector. Critics argue that TCS's cuts could signal a broader trend of job reductions across the industry. Kapil Joshi, CEO of Quess Corp, remarked that the focus on fresher hiring is both strategic and structural, aimed at rebalancing the workforce pyramid while controlling costs.
Broader Implications of Job Cuts
The layoffs at TCS and the hiring trends among other IT firms reflect a significant shift in corporate strategies across various sectors, including consumer goods. Nestlé, for instance, announced plans to cut 16,000 jobs globally as part of a two-year restructuring initiative aimed at enhancing efficiency and adapting to a rapidly changing economic landscape. This trend underscores a growing emphasis on operational optimization over traditional expansion, driven by factors such as inflation, technological advancements, and changing consumer behaviors.
Verbatim Quotes
- “We have ‘released with care’ mid-level staff who did not fit new roles, while continuing to hire and retrain people in next-generation capabilities,” — Sudeep Kunnumal, Chief HR Officer, TCS
- “The world is changing, and Nestlé needs to change faster,” — Philipp Navratil, CEO, Nestlé
Conclusion
The contrasting employment trends within India's IT sector highlight a complex landscape where companies are navigating the dual pressures of technological advancement and workforce optimization. While some firms are expanding their headcounts, others are making significant cuts, reflecting a broader recalibration in response to evolving market demands. As the industry adapts, the balance between maintaining a skilled workforce and embracing automation will be crucial for future success.
