What’s Driving the Mass Job Cuts in India and Beyond?

n 2025, the global tech industry is grappling with a seismic shift, as major players like Oracle, TCS, Infosys, Wipro, HCLTech, Microsoft, and Intel announce significant layoffs, leaving tens of thousands of workers in limbo.

Reports indicate Oracle slashed 10% of its Indian workforce, impacting thousands in its Cloud Infrastructure (OCI) unit. Meanwhile, Tata Consultancy Services (TCS) cut 12,000 jobs, Infosys let go of 8,000, Wipro trimmed 5,500, and HCLTech reduced 4,200 roles.

Globally, Microsoft has shed 15,000 jobs, and Intel is reportedly preparing to eliminate 10,000 more. These numbers paint a grim picture for tech workers, particularly in India, a long-standing hub for IT talent.

So, what’s driving this wave of layoffs, and what does it mean for the industry and its workforce?

The Scale of the Layoffs

India’s IT sector, which employs over 5.67 million people and contributes roughly 7.5% to the nation’s GDP, is undergoing a profound transformation.

Oracle’s layoffs, concentrated in cities like Bengaluru, Hyderabad, Chennai, Mumbai, Pune, and Noida, are part of a global restructuring effort affecting employees in the US, Canada, and Israel as well.

The company, which employed around 28,824 people in India as of 2024, is reportedly focusing on performance-related cuts while investing in AI and cloud technologies.

TCS, India’s largest IT employer, announced cuts affecting 2% of its 613,069-strong workforce, primarily targeting mid- and senior-level professionals with over a decade of experience.

Infosys, while planning to hire 20,000 freshers, has also laid off 8,000 employees, including 240 entry-level engineers who failed internal assessments. Wipro and HCLTech, with 5,500 and 4,200 job cuts respectively, are following suit, citing “productivity gains” and “redundant skills” due to automation.

Globally, the picture is equally stark. Microsoft’s layoffs, reportedly totaling 15,000, have hit its Xbox and gaming divisions hard, while Intel’s planned 10,000 job cuts reflect broader cost-cutting measures amid economic pressures and AI-driven shifts.

Over 80,000 tech jobs have been lost worldwide in 2025 alone, with some estimates suggesting up to 100,000 by mid-year.

Why Are These Layoffs Happening?

The layoffs stem from a confluence of factors: rapid AI adoption, economic uncertainty, and corporate restructuring.

AI and Automation: The rise of artificial intelligence is reshaping the tech landscape. Routine tasks like coding, manual testing, and infrastructure management are increasingly automated, rendering many mid-level roles obsolete.

Experts estimate that 400,000 to 500,000 jobs in India’s $283 billion IT outsourcing sector could vanish in the next two to three years as companies prioritize efficiency. TCS’s CEO, K. Krithivasan, downplayed AI as the direct cause, citing “skill mismatches,” but industry analysts argue that AI’s impact is undeniable.

Economic Pressures: Global clients, particularly in the US, are tightening budgets amid economic headwinds and potential tariff changes. This has reduced demand for traditional IT services, pushing companies to optimize costs by doing more with fewer employees.

The US alone saw 740,000 job cuts across industries in 2025, with tech contributing significantly.

Restructuring and Skills Shift: Companies are moving away from the traditional “pyramid” model, which relied on large numbers of entry-level workers, toward a skills-focused structure.

This shift favors employees with expertise in AI, cloud computing, and other emerging technologies, leaving those with outdated or generic skill sets vulnerable. Wipro’s introduction of mandatory English assessments and Performance Improvement Plans signals a broader push to streamline senior management.

The Human Toll

For workers, especially in India, these layoffs are more than statistics—they’re personal crises. Many affected employees, particularly mid- and senior-level professionals, face financial strain, with high EMIs (Equated Monthly Installments) on homes and other commitments.

Social media posts on platforms like X reflect growing anxiety, with users lamenting “dark days” for the IT sector and questioning the stability of once-secure jobs.

The ripple effects extend beyond individuals. India’s IT industry has long fueled middle-class aspirations, driving consumption in real estate, automotive, and retail sectors. Mass layoffs could dampen this economic engine, potentially slowing urban consumption and long-term investments like tourism and luxury goods.

A Contrarian Approach: Infosys’s Hiring Push

Amid the gloom, Infosys stands out with plans to hire 20,000 freshers in 2025, betting on AI as a productivity engine rather than a job-killer. CEO Salil Parekh emphasized the need for skills in AI-driven services, positioning the company to capitalize on emerging opportunities.

This contrast with TCS, Wipro, and HCLTech’s cost-cutting strategies highlights a divergence in how firms are navigating the AI revolution.

What Lies Ahead?

The tech industry is at an inflection point. While AI and automation promise long-term efficiency, they’re disrupting traditional roles at an unprecedented pace. Experts like Ray Wang of Constellation Research warn that “white-collar work as we know it” is transforming, and employees must reskill to stay relevant.

For India, the challenge is twofold: adapting to AI-driven disruption while maintaining its position as a global IT hub. New Delhi is pushing for growth in labor-intensive sectors like manufacturing, but the IT industry’s slowdown could trap India in a “middle-income” rut if it fails to pivot to higher-value services.

What Can Workers Do?

For those affected or at risk, reskilling is critical. Focus on high-demand areas like AI, machine learning, cloud computing, and cybersecurity. Platforms like Coursera, Udemy, and edX offer accessible courses to bridge skill gaps.

Networking, both online and offline, can open doors to new opportunities, while outplacement services offered by companies like TCS provide temporary support.

The Bigger Picture

These layoffs aren’t just a tech problem—they reflect a global shift in how work is defined and valued. While companies chase efficiency and innovation, the human cost is undeniable.

Governments, firms, and workers must collaborate to navigate this transition, ensuring that the benefits of AI don’t come at the expense of livelihoods.

As the tech industry resets, one thing is clear: adaptability will be the key to survival. Whether you’re a coder, a manager, or a fresher, the message is the same—evolve or risk being left behind.

Sources:

https://www.india.com/news/india/bad-news-for-employees-oracle-fires-10-of-india-workforce-in-cloud-infrastructure-not-ratan-tatas-tcs-azim-premjis-wipro-or-narayana-murthys-infosys-8018663/

https://www.indiatoday.in/amp/education-today/news/story/over-80000-tech-jobs-lost-in-2025-microsoft-intel-meta-lead-layoff-wave-2773359-2025-08-19

https://www.reuters.com/business/world-at-work/india-tech-giant-tcs-layoffs-herald-ai-shakeup-283-billion-outsourcing-sector-2025-08-08/

https://www.business-standard.com/industry/news/tcs-infosys-lay-off-indian-it-sector-job-cuts-automation-ai-reskilling-125072800505_1.html

https://www.financialexpress.com/life/technology-tech-layoffs-oracle-joins-big-tech-companies-in-cutting-staff-to-fund-500-billion-ai-expansion-3946097/

https://www.businesstoday.in/technology/news/story/tcs-layoffs-shake-indian-it-mass-exits-show-even-safe-jobs-arent-untouchable-486538-2025-07-28