Silent Layoffs Loom: Nearly 50,000 Employees in Indian IT Sector Likely To Lose Jobs by End of 2025 Amid AI Implementation and Business Growth, Says Report
The Indian IT sector is about to face a wave of "silent layoffs", reportedly affecting around 50,000 employees by the end of 2025. The IT and tech layoffs this year have already left employees worried about their future and survival. The silent layoffs will be initiated amid AI implementation and business growth, says a report.
Mumbai, October 11: Silent layoffs are expected to affect thousands of employees working in the Indian IT sector in 2025. By the end of this year, an estimated 50,000 people could lose their jobs amid various technological advancements and business changes. Companies have reportedly begun cutting jobs citing performance issues and delaying career advancement.
The precise figure remains unclear, however, the projects suggest that the silent layoffs could hit as many as 50,000 by the end of 2025, said a report by TOI. IT industry experts have warned that companies, amid business growth and AI implementation, could reduce surplus engineering roles. These individuals are likely to be replaced by artificial intelligence capable of handling engineering tasks, it added. TCS Layoffs: Tata Consultancy Services Eliminated Nearly 20,000 Jobs by September Amid AI Adoption Pressure, US Immigration Policy Changes, Says Report.
Silent Layoffs To Affect Nearly 50,000 IT Employees by End of 2025
It is estimated that between 2023 and 2024, layoffs in the IT sector affected around 25,000 employees. In 2025, the figure may double. The major IT layoffs were announced by TCS (Tata Consultancy Services) in July this year, estimated to affect nearly 12,000 individuals as the IT giant cuts 2% of its workforce. Employees who experienced silent layoffs painted a grim picture of how they were told to leave.
One IT professional, who was laid off three years ago, said HR called him one day and informed him that it was his last working day. The dismissed individual said HR “informed that I was not required anymore.” Shocked, he didn’t know how to react. He mentioned he was given three months of severance, and the reason for removing him was his performance. Another former IT employee said he was given a three-month grace period to find another job.
TeamLease Digital CEO Neeti Sharma projected that between 55,000 and 60,000 employees, amid outdated platform limitations and demand for specialised expertise, could be laid off by the end of 2025. TOI highlighted that since July, Accenture and TCS have laid off around 23,000 employees combined.
Reason for Silent Layoffs in IT Sector?
TCS and Accenture laid off employees this year likely due to adopting similar practices, managing costs and relying more on digital solutions such as AI-based technology. Employees with over 25 years of experience received “decent” compensation for their services; however, those working with the firms for 10 years were badly affected. Instead of direct terminations, the organisations have asked employees to resign and receive compensation based on pre-determined criteria. Tech Layoffs 2025: Over 91,000 Employees Laid Off by 208 Companies; Intel, TCS, Microsoft and Wipro Among Top Firms Cutting Jobs.
Amid economic uncertainty and the rise of AI, the USD 280 billion Indian IT sector faces challenges leading to delays in client decisions and higher costs than revenues. Neeti Sharma mentioned that middle-management positions with technical expertise and innovative capabilities saw the highest turnover rates.
(The above story first appeared on LatestLY on Oct 11, 2025 04:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).