India’s technology and software services industry is witnessing a growing trend of “silent layoffs”, with experts estimating that up to 35,000 jobs could be lost in 2026 as companies focus on productivity gains, automation and workforce restructuring.
According to staffing firm TeamLease, between 10,000 and 15,000 technology professionals had already exited the industry through silent layoffs by May. The firm projects total job losses of 25,000 to 35,000 by the end of the year. CIEL HR Services estimates that around 12,000 jobs have been cut so far and expects total layoffs to reach between 18,000 and 21,000 in 2026. Combined with reductions recorded in 2025, total job losses across the two years could climb to 43,000.
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Unlike previous rounds of layoffs that were publicly announced, the current trend is largely unfolding through performance-based exits and the removal of roles deemed less relevant, without formal declarations by employers. Industry experts say the latest workforce correction is being driven less by weak demand and more by artificial intelligence-led productivity improvements, widening skill gaps and efforts to simplify organisational structures.
The five largest Indian IT companies — TCS, Infosys, HCLTech, Wipro and Tech Mahindra — collectively reduced their workforce by 7,389 employees in FY26, reversing the net additions recorded a year earlier. TCS alone cut more than 23,000 jobs, while Infosys added around 5,000 employees.
Experts describe the trend as a workforce realignment rather than a broad employment decline. While routine and automation-prone roles continue to face pressure, demand remains strong for specialised talent in artificial intelligence, cloud computing, cybersecurity, platform engineering and global capability centres.
Industry leaders believe the shift marks a deeper transformation in the technology sector, where companies are moving away from labour-intensive growth models and increasingly prioritising skills, innovation and technology-driven efficiency.
