Mass Layoffs Across India IT Industry? 7 Signs Which Strongly Suggests This Possibility

Mass layoffs across Indian IT industry?
Mass layoffs across Indian IT industry?

Right now, Indian IT industry is standing at a unique juxtaposition of fate, karma and diplomacy, which is threatening to alter its very existence.

In the last few months, we have been reporting about new projects, few terminations, new experiments and new dimensions of the IT industry as a whole, but right now, it seems that terminations and mass layoffs is the dimension which is dominating them all.

According to various estimates, Indian IT industry is right now employing around 20 lakh people across various job descriptions. But the equations may change very soon, as signals coming in from various sources suggests that the industry may witness mass lay-offs and terminations, very soon.

If you are into IT industry, then do stay alert, because before any calamity, the nature provides us signals.


Sign 1: Infosys Firing Mid-Level Managers

Recently, we learnt that Infosys will soon fire 1000 mid-level managers, who have experience between 10-15 years, and manage deliverables for the clients. This comes at a time when they have publically announced that they will hire 10,000 employees in US, as H1B visa regime becomes tough and hard to get. But Infosys is existing to make profit, and not to support Indian employees, and they will prove it very soon.

37,000 employees from Infosys have anyways left the company, as hiring has dropped by 65%, even as lower-end jobs are vanishing from the company. Being India’s top IT company, this is signal #1.

Sign 2: Cognizant Terminating 6000 Employees

With apprx. 2 lakh employees, Cognizant is India’s 3rd largest IT company after TCS, and recently they announced they around 6000 to 10,000 employees would be removed, using various ways, which includes appraisal review and performance review. Although some employees are using legal tactics to stop it, but the terminations are inevitable.

Automation, advanced technology and US visa problems have together forced even Cognizant to seek shelter in mass layoffs. And this is our signal #2.

Sign 3: Wipro Adapting Automation At A Rapid Speed

Wipro, India’s #4 biggest IT firm is hell bent on using more and more automation to reduce dependencies on human being, and this means more layoffs, and more terminations in the coming days.

Wipro’s homemade Holmes AI platform has already unleashed massive transformations, as it is now capable of doing work of 10,000 engineers, and that too in a fraction of second.

Last year, it was reported that Holmes AI will replace 3300 jobs; but this year, this may go up. And this is our signal #3.

Sign 4: Tata Teleservices Firing IT Sales Staff

Tata Teleservices has announced that they will fire between 500 and 600 employees in this coming months, and these are the IT Sales employees, who bring in business for them. If companies like Tata Teleservices is firing IT Sales experts, then it means something bad for the whole industry.

And this is our signal #4

Sign 5: Larsen & Toubro Terminating Employees

Last year, 78 year old Larsen & Toubro (L&T), which is described as India’s largest engineering firm, decided to terminate 14,000 employees in a single go. This was described as India’s biggest mass layoffs.

Although not all engineers to be fired belong to IT domain, but the indications are clear: there are no more jobs. And this is our signal #5.

Sign 6: Tech Mahindra Firing 1500 Employees

Tech Mahindra has just announced that they will terminate 1500 employees, which is 1.5% of their overall employee strength. The management has described this as a normal appraisal process, but it seems its much more than that.

Sign 7: Less Hiring Across Industry

Capgemini India CEO has already declared that 65% of Indian employees are not trainable; and this speaks volume about the whole industry’s hiring trend.

In 2015, top 5 IT firms hired 24% less employees, and Nasscom has predicted that automation will wipe out 50% of all IT jobs in the coming days. Another report by predicts that as high as 4 lakh engineers would be out of IT jobs very soon.

Although these signals and signs have been reported at the top IT companies of India, but it will hit smaller IT firms very soon. After all, when business flow ceases, then everyone in the ecosystem will encounter the consequences.

Are you aware of any more signs, which signals mass layoffs and terminations across Indian IT industry? Do let us know by commenting right here.

1 Comment
  1. Kapil says

    Its inevitable that the trend will continue, it is for IT engineers to make a way out. The difficult part is that they are in an age where there are multiple commitment at personal level. In order to get out the situation, they need to find ways to manage this and move ahead. Checkout my post on how to survive the layoff trend –

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