India’s IT sector is expected to face major job cuts, with over 50,000 employees likely to lose their jobs by the end of this year, though the exact number may vary.
India’s IT Industry Faces Over 50,000 Potential Job Losses by Year-End
A Times of India report stated that around 25,000 people were laid off between 2023 and 2024, and this figure could potentially double in the current year.
Companies are reportedly using different methods to reduce staff — including citing “poor performance,” delaying promotions, or asking employees to resign voluntarily.
Phil Fersht, CEO of HFS Research, said that many large firms have “secretly laid off a significant number of employees” this year.
Niti Sharma, CEO of Teamlease Digital, predicted that total layoffs in the IT industry could reach between 55,000 and 60,000 employees by the year’s end.
Major companies such as TCS and Accenture have already begun large-scale layoffs.
TCS reportedly plans to cut about 12,000 more jobs by March 2026, which equals around 2% of its total workforce.
Accenture has already laid off approximately 11,000 employees globally between June and August.
Employee Unions Accuse TCS Of Firing 6000 Employees Illegally
Major IT employee unions — including KITU, AITE, and UNITE — have accused Tata Consultancy Services (TCS) of mass layoffs in violation of the Industrial Disputes Act. The unions allege that the company retrenched 6,000 employees without seeking mandatory government approval, urging state and central authorities to act against what they called “corporate impunity.”
According to TCS’s Q2 FY26 report, the company’s total workforce fell to 5,93,314 from 6,13,069 in the previous quarter — a decline of 19,755 employees. TCS’s CHRO Sudeep Kunnumal explained that around 6,000 employees were part of “involuntary attrition,” as the firm adjusts its workforce amid changing business dynamics.
Employee groups have rejected TCS’s claim of voluntary exits, calling the layoffs coercive and unethical. They allege that employees were moved to the bench without notice, pressured to resign within hours, and even female staff on maternity leave were threatened with termination if they sought extensions.
