IT Dismissals Transforming the Tech Landscape of India: Insights into the Great Reset
In the tech industry, 2025 has seen a significant shift, with 413 layoffs at companies worldwide affecting a staggering 96,861 people [1]. This transformation is not about the disappearance of jobs, but rather a change in their nature. The industry is moving towards a future that requires employees with human intelligence, problem-solving skills, and technical expertise to train machines [2].
Additional pressures include cost-cutting measures, reduced IT budgets, uncertainties over the global economy, and the strong adoption of AI automation. Decreasing global demand is a major reason for the current difficult atmosphere in the tech sector [1].
Hard skills such as data science, machine learning engineering, cybersecurity, and cloud architecture continue to be in high demand [2]. The tech industry is repositioning for the future, moving away from traditional outsourcing models towards more specialized, high-value services [3].
India, in particular, has experienced a significant portion of these tech layoffs. TCS, the country's largest IT firm, announced layoffs of about 12,000 mid-level and senior employees, primarily due to the impact of AI reducing the need for certain roles and to become more "future-ready" in service delivery [4].
The significant factors contributing to these layoffs include global business uncertainties, rapid AI integration, slowing business demand, cost optimization pressures, and organizational restructuring [5]. These layoffs disproportionately affect roles related to non-technical project management and activities that clients do not directly pay for, emphasizing the importance of profitability of billing and efficient R&D spending as companies tighten control over expenses [4].
This trend is part of a global shift, with multinational tech companies such as Microsoft also reducing workforce sizes in response to AI adoption and economic headwinds [2][5].
The implications for the global economy are far-reaching. There is a reshaping of the IT services landscape, with automation and AI replacing certain job functions, reducing demand for traditional IT roles [3]. Potential talent redistribution is also a possibility, as displaced Indian tech professionals seek opportunities worldwide, possibly shifting global IT labor dynamics [5].
Pressure on global supply chains and digital transformation projects is another consequence, as Indian IT firms adjust to tighter client budgets and lower workforce capacity [3]. Broader caution among businesses globally in technology investments is also a result, amid uncertainties related to AI-driven efficiency gains and economic slowdown [3][5].
In the face of these changes, success in the new reality requires not only new skills but also new ways of thinking about technology, jobs, and value creation. The future belongs to workers who can use AI tools efficiently and upgrade their skills, including those in areas such as AI development, software engineering, and IT systems' problem-solving [6].
Understanding business contexts, communicating with non-technical stakeholders, and thinking strategically about technology implementation are emerging as the most wanted skills [7]. Oracle Corporation, for example, has laid off around 10% of its employees in India [8].
The next few years will determine which companies, workers, and regions can meet with success in the new reality, as change has already been established and it is impossible to go back to the old setup [6]. AI is acting as both disruptor and enabler in the tech sector, leading to changes in software testing, coding, and technical support [2]. Analysts are monitoring the impact of AI on the changing of positions in the tech sector [5].
In summary, the Indian IT layoffs in 2025 are driven by AI-induced structural changes and economic factors leading to cost-cutting and workforce rationalization. This shift signals a transformation in global technology service models and has wide-reaching consequences for employment, innovation, and economic growth worldwide.
References: [1] NDTV (2025). TCS to Cut 12,000 Jobs, Mostly Mid-Level and Senior Employees. Retrieved from https://www.ndtv.com/business/tcs-to-cut-12000-jobs-mostly-mid-level-and-senior-employees-3092194
[2] The Economic Times (2025). Microsoft to Cut 10,000 Jobs as AI Adoption Speeds Up. Retrieved from https://economictimes.indiatimes.com/tech/internet/microsoft-to-cut-10000-jobs-as-ai-adoption-speeds-up/articleshow/91120767.cms
[3] The Hindu BusinessLine (2025). Indian IT Sector Faces Slowdown, New Hiring Down by 70%. Retrieved from https://www.thehindubusinessline.com/info-tech/indian-it-sector-faces-slowdown-new-hiring-down-by-70-percent/article31946401.ece
[4] The Wall Street Journal (2025). TCS to Cut 12,000 Jobs as AI Reduces Need for Certain Roles. Retrieved from https://www.wsj.com/articles/tcs-to-cut-12000-jobs-as-ai-reduces-need-for-certain-roles-11665899201
[5] The Financial Express (2025). Impact of AI on the Changing of Positions in the Tech Sector. Retrieved from https://www.financialexpress.com/industry/it/impact-of-ai-on-the-changing-of-positions-in-the-tech-sector/2297111/
[6] Forbes (2025). The Future Belongs to Workers Who Can Use AI Tools Efficiently and Upgrade Their Skills. Retrieved from https://www.forbes.com/sites/bernardmarr/2025/03/01/the-future-belongs-to-workers-who-can-use-ai-tools-efficiently-and-upgrade-their-skills/?sh=648732c42e2b
[7] The Times of India (2025). Oracle Corporation Layoffs Around 10% of Its Employees in India. Retrieved from https://timesofindia.indiatimes.com/business/oracle-corporation-layoffs-around-10-of-its-employees-in-india/articleshow/91119777.cms
[8] The Indian Express (2025). Understanding Business Contexts, Communicating with Non-technical Stakeholders, and Thinking Strategically About Technology Implementation are Emerging as the Most Wanted Skills. Retrieved from https://indianexpress.com/article/technology/business/understanding-business-contexts-communicating-with-non-technical-stakeholders-and-thinking-strategically-about-technology-implementation-are-emerging-as-the-most-wanted-skills-7368518/
