A wave of workforce cuts has reshaped India’s technology sector in 2025, creating uncertainty for employees while accelerating demand for new digital skills.
The year has been one of the most challenging for the industry, with thousands of professionals losing jobs across large corporations and startups. Companies have restructured teams as they move toward artificial intelligence, automation and new operating models.
Industry experts say the layoffs point to long term structural change rather than a slowdown in business activity. Automation and generative AI have altered job requirements, removed certain roles and pushed companies to rethink how talent is deployed.
Data from Intellizence shows that Tata Consultancy Services reduced its workforce by nearly 2 percent, impacting around 12,000 employees, mainly at mid and senior levels. This marked one of the largest layoff exercises in India during 2025. Microsoft cut close to 9,000 roles, PwC let go of about 1,500 employees and Meta reduced its workforce by around 600. Google also carried out several rounds of job cuts but did not share specific numbers.
Alongside official announcements, many companies carried out silent layoffs. Employees were removed from projects or asked to exit through indirect measures, including contract non renewals. Smaller firms and startups followed similar approaches to control costs.
Key reasons behind the job cuts include skill gaps, efficiency targets, cost pressure and the growing use of artificial intelligence. Reports suggest that nearly 64 percent of Indian IT companies adopted generative AI tools in 2025, speeding up the shift away from traditional roles.
The impact on workers has been significant. Many faced sudden income loss, difficulty finding new roles and increased stress. Experienced professionals often accepted lower salaries to stay employed, while families also felt the financial strain.
For employers, layoffs delivered short term savings but raised long term concerns around talent loss, brand image and employee trust.
Despite the disruption, experts say the transition also brings opportunity. Demand is rising for skills in artificial intelligence, data analytics, cloud computing and cybersecurity. Professionals who reskill and adapt are expected to remain competitive as the sector continues to evolve.
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