Indian IT Firms See Headcount Drop by Over 24,000 in Past Year
India’s six largest IT firms lost over 24,000 jobs in a year as employee exits outpaced hiring, according to Xpheno data. Combined headcount at TCS, Infosys, HCLTech, Wipro, Tech Mahindra and LTIMindtree fell nearly 3% to 797,722 in October 2026. AI adoption and workforce optimization are reshaping hiring, while demand for AI, cloud and cybersecurity skills continues to grow.
Employee attrition has outpaced fresh hiring across India’s top technology service providers, leading to a net reduction of over 24,000 positions in IT and engineering roles over the past 12 months. Data compiled by specialist staffing firm Xpheno reveals that combined headcounts at Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree dropped nearly 3 percent, falling from 822,144 in October 2025 to 797,722 in October 2026.
The decline reflects shifting industry requirements and disciplined bench management during a period of moderate revenue growth. As per a report by The Economic Times, the six software majors collectively registered 92,000 employee exits over the year, while replacement intake totaled 68,000, leaving a significant shortfall as companies opted not to refill every vacant position. eBay Layoffs: E-Commerce Giant To Cut 1,000 Jobs to Simplify Operations.
Changing Skill Demand and AI Integration Drive Shift
Industry experts attribute the net reduction to workforce optimization and the increasing integration of artificial intelligence tools in routine operations. Staffing analysts note that replacement hiring has slowed down significantly for roles with five to 12 years of experience in manual testing, application maintenance, infrastructure support, and level-one and level-two services, where automation is lowering overall staffing needs.
Conversely, demand for specialized technology roles remains robust. Positions in cloud computing, cybersecurity, advanced artificial intelligence, and specialized software engineering are growing at an estimated 16 percent annually, creating a skill mismatch for professionals transitioning out of conventional maintenance roles.
Strategic Upskilling and Growth Signals Across IT Sector
Corporate strategies have shifted toward internal upskilling to ensure teams are competent with generative AI deployment, while actively reducing unallocated talent, commonly referred to as bench strength. By optimizing bench capacity during low-growth periods, IT service firms have managed to protect operational margins without compromising core service delivery or revenue targets. Tech Layoffs Affect Over 1,29,000 Employees So Far This Year; Check Details.
Market observers view this consolidation as a temporary operational phase rather than a permanent retrenchment. Recent second-quarter figures signal early signs of stabilization, with TCS adding 4,258 employees, HCLTech adding 6,450, and Tech Mahindra increasing its headcount by 5,446, even as Wipro reduced its workforce by 6,716, indicating that selective recruitment is returning alongside new project wins.
(The above story first appeared on LatestLY on Oct 22, 2026 08:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).