Workplace Controversies of 2025: CEO exits, HR blunders and toxic culture exposés

The year 2025 was marked by several workplace controversies ranging from record CEO exits and governance lapses to toxic culture exposés and massive layoffs from established companies as well as startups.

While the CEO turnover saw an uptick, a surge in ‘silent layoffs’ added to the unpredictability for the mid-level employees and the support staff. Comments endorsing a 70- to 90-hour workweek, combined with high executive pay during layoffs drew public scrutiny.

Following tragic incidents like the

death of EY employee Anna Sebastian in 2024, the spotlight on mental health grew sharper in 2025. The emphasis on mental health and work-life balance was further amplified by Gen Z employees, who are increasingly becoming a bigger part of the Indian workforce.

Here are the key workplace controversies that defined 2025:

IndusInd Bank’s accounting scandal and leadership exit

One of the biggest corporate flashpoints this year came from the financial sector. In March 2025, IndusInd Bank disclosed large accounting discrepancies linked to the valuation of forex derivatives. The revelation wiped out close to a quarter of the bank’s market value in a single trading session. The fallout was swift, the bank’s CEO and other senior executives resigned, taking “moral responsibility” for the lapses. Regulatory scrutiny intensified and SEBI barred former executives from trading as allegations of insider activity surfaced ahead of the disclosure. The episode raised questions about governance standards and internal controls at one of India’s largest private lenders.

ALSO READ | SFIO launches probe into IndusInd Bank over accounting issues

12,000 layoffs at TCS sparked debate on transparency and fairness

India’s largest IT services company faced major heat this year after announcing layoffs impacting about 12,000 employees. The move that was positioned as part of an AI-led restructuring, triggered widespread debate over “forced exits” and the fairness of mid-career layoffs in India’s largest private sector employer. Employee groups alleged that many of them were nudged towards resignations rather than being laid off formally. This incident led to a parallel controversy about senior level compensation as critics questioned if the high executive pay was defensible amid large-scale job cuts. The episode reignited discussions on whether India needs more transparent and empathetic layoff frameworks.

ALSO READ | 'If TCS can lay off, who’s safe?': Social media reacts to 12,000-employee layoff plan

Startups slashed jobs as funding tightened

India’s once-buoyant startup ecosystem also witnessed large-scale job losses in 2025. Several companies across AI, fintech, gaming and logistics cut hundreds of roles each as they pivoted towards profitability.

Over 6,700 startup job losses were recorded this year, including the conversational AI unicorn Gupshup laying off 500 employees due to funding issues and Ola Electric firing 1,000 employees due to automation. Founders were criticised for abrupt communication, unclear severance structures and the widening gap between employer branding and on-ground practices.

70-90 hour workweek debate

Following the 70-hour work week endorsed by Infosys founder Narayan Murthy in 2024, the L&T Chairman SN Subrahmanyan triggered a nationwide debate in early 2025, suggesting employees to be prepared to work up to 90 hours a week, even on Sundays. His comments, “If I could make you work on Sundays, I’d be happier,” were widely criticised as dismissive of work-life balance. When questioned about the rationale, he reportedly asked, “What do you do sitting at home? How long can you stare at your wife?” and urged employees to “get to the office and start working.”

The backlash was immediate, with employees and labour groups calling the remarks emblematic of toxic expectations across corporate India. GenZ and millennial professionals used the moment to highlight long hours, late-night communication and unrealistic demands that remain common across sectors.

Silent firing trends

Silent firing emerged as one of the most unsettling workplace trends in 2025, with multiple reports showing how companies increasingly pushed employees out without issuing formal termination notices.

Organisations resorted to quiet firing by sidelining workers, reducing responsibilities, excluding them from key communication channels, delaying appraisals, or denying growth opportunities, until the employee felt compelled to resign — a tactic that enabled companies to trim headcount quietly, avoiding severance obligations and public scrutiny typically associated with layoffs.

The phenomenon was especially visible in the tech sector, where The Times of India reported a rise in silent layoffs, marked by subtle but deliberate signals likes prolonged bench time, sudden changes in reporting structures, unrealistic performance expectations, and the withdrawal of meaningful work. The Economic Times further highlighted that mid-career professionals were particularly vulnerable, as firms looked to cut costs amid AI-led restructuring. These reports underline a clear shift in India’s workforce practices from open layoffs to more opaque, indirect methods of workforce reduction.

CEO turnover hits multi-year high

Corporate India experienced an unusually high pace of leadership change in 2025, with data showing a sharp rise in CEO exits among major listed firms. According to a Spencer Stuart study covering BSE 200 companies, 16 CEOs stepped down in the first half of 2025, a rate not seen since the pandemic-era turbulence in 2020. Nearly 40% of those transitions occurred within three years, underscoring boards’ increased willingness to shake up the top as strategic pressures mount. Additionally, broader India Inc data suggests that 141 CEOs and managing directors of NSE-listed companies resigned in FY2024-25, up from 119 the prior year, reflecting elevated churn at the top echelons of Indian business.

Taken together, these flashpoints made 2025 one of the most disruptive years for India’s workplace ecosystem. Governance lapses, mass layoffs, the rise of silent firing, and debates over extreme work hours exposed growing tensions between corporate expectations and employee wellbeing. At the same time, unprecedented CEO churn signalled shifting priorities in boardrooms as companies grappled with volatility and pressure to course-correct.

The year also marked a shift in how employees, especially GenZ and younger millennials, engaged with workplace norms, calling out toxic practices and demanding greater transparency, balance and accountability. As these voices grow louder, the events of 2025 may well force India Inc to rethink how it hires, manages and retains talent, making the year a pivotal turning point in the country’s evolving work culture.

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