Decoding the 'Silent Layoffs'
The era of large, publicly announced job cuts in the tech sector appears to be evolving. In its place, a quieter, more insidious trend is taking hold: 'silent layoffs' or 'quiet cutting'. Instead of formal layoff announcements, companies are reducing
headcount through less direct means. This includes not replacing employees who leave, reassigning staff to lower-impact projects, or implementing performance reviews that result in managed exits. In India's $315-billion technology industry, this could lead to the elimination of 25,000 to 35,000 jobs in 2026 alone, according to staffing firm estimates. This method allows companies to trim their workforce and reduce costs without the negative press and severance payouts associated with traditional layoffs. The goal is often to encourage voluntary resignation by making a role less fulfilling or by stalling career growth, a tactic some call 'quiet firing'.
The Intense Pressure for AI Productivity
Simultaneously, there is an immense top-down pressure on organisations to adopt artificial intelligence. A recent LinkedIn report found that nearly four in five Indian C-suite executives feel pressured to accelerate AI implementation. The mandate is clear: boost efficiency and output. Companies are investing heavily, believing AI can automate tasks, streamline operations, and drive growth. However, this push comes with a paradox. While many employees report productivity gains from using AI, a significant number also experience increased stress and workload from having to supervise the technology—a phenomenon dubbed 'botsitting'. Researchers have found that a large portion of time saved by AI is lost to feeding it context, checking for errors, and correcting its outputs. This tension highlights a disconnect between the promise of AI and the reality of its integration.
Connecting the Dots: A Unified Strategy
These two trends—silent layoffs and AI pressure—are not happening in isolation. They are two sides of the same coin, representing a fundamental rethinking of the modern workforce. Companies are quietly trimming roles they believe can be partially or fully automated, creating a leaner organisation optimised for an AI-augmented future. The jobs most at risk are often those involving repetitive, structured tasks, while roles requiring critical thinking, complex problem-solving, and human judgment are being augmented rather than replaced. The strategy appears to be using natural attrition and performance management to shed legacy skills while simultaneously pushing remaining employees to integrate AI into their workflows. This allows businesses to increase output without increasing headcount, or even while reducing it.
How This Reshapes Workforce Planning
This new reality demands a radical shift in strategic workforce planning. The conversation is no longer just about managing headcount; it's about managing 'capability'. AI-powered planning tools are helping organisations move from reactive hiring to proactive talent strategy. Instead of simply filling vacant roles, planners must now analyze which skills are becoming obsolete and which are in demand. The focus is shifting from job titles to the underlying tasks and skills required to achieve business goals. This means identifying opportunities to reskill and redeploy existing talent into new, AI-augmented roles that combine human expertise with machine efficiency. For Indian executives, over half admit they lack visibility into the future roles their organisations will need, making this strategic shift both urgent and challenging.
