50,000 Jobs at Risk As IT Sector Faces ‘Silent Layoffs’ Amid AI Adoption and Restructuring

India’s IT sector is witnessing a wave of “silent layoffs,” with estimates suggesting that over 50,000 employees could lose their jobs by the end of 2025, according to a TOI report. Industry insiders attribute the trend to a combination of AI-driven automation, cost-cutting measures, and shifts toward competency-based organizational structures.While precise figures remain uncertain, TOI reports that roughly 25,000 job losses occurred between 2023 and 2024, with projections indicating the number may double this year. Companies are reportedly using performance-linked exits, delayed promotions, and voluntary resignation requests to reduce surplus staff.Major IT firms, including TCS and Accenture, have announced large-scale layoffs. TCS plans to reduce around

12,000 employees (2% of its workforce) by March 2026, while Accenture’s $865 million business optimization initiative has already resulted in 11,000 global job cuts between June and August. “Tens of thousands of roles have been quietly phased out across large providers this year,” Phil Fersht, CEO of US-based HFS Research, told TOI.The sector’s middle-management positions are particularly affected. Employees promoted based on team management experience rather than technical expertise are struggling to stay relevant as AI tools handle routine tasks such as reporting and coordination. Neeti Sharma, CEO of Teamlease Digital, projected that the number of affected IT professionals could rise to 55,000–60,000 by year-end.Experts note that the broader IT landscape is undergoing a structural transformation. The industry is shifting from hierarchical personnel management to specialist teams focused on technical expertise, digital solutions, and AI adoption. TOI reports that firms specializing in cloud computing, data analytics, AI, and digital transformation are navigating the transition more successfully, while traditional outsourcing companies face the greatest disruption.The layoffs are also influenced by external factors, including geopolitical tensions, changes in US immigration policy, and rising H-1B visa costs. These developments, combined with AI adoption, are pushing organizations to optimize workforce structures, reduce costs, and maintain competitiveness.As Indian IT companies recalibrate for the AI era, employees and industry observers anticipate further restructuring. “Accenture’s move signals an industry-wide reset for the AI era,” Fersht added to TOI, highlighting that these layoffs reflect strategic shifts rather than simple cost-cutting.