The Rise of Silent Layoffs in India's Tech Sector
The Indian tech industry is undergoing significant workforce transformations in 2025, with over 50,000 tech jobs projected to be at risk this year, according to Neeti Sharma, CEO of Teamlease Digital. This figure is more than double the estimated 25,000 affected in 2023–24.
Major Indian IT companies, including TCS, Infosys, Tech Mahindra, and Wipro, have started restructuring their teams, quietly reducing staff as part of broader operational and technological shifts. For instance, TCS plans to cut around 20,000 jobs to integrate AI and automation into its processes, marking one of the largest workforce adjustments in recent years. Infosys and Tech Mahindra have together removed over 10,000 roles, citing evolving skill requirements, client demands, and cost optimization measures.
These changes reflect a larger trend across the Indian IT sector, driven by rapid adoption of AI, automation of routine tasks, global economic pressures, and changing client expectations. Employees are increasingly facing a mix of attrition, contract non-renewals, and silent layoffs that often occur without formal announcements, creating uncertainty for tens of thousands of workers and raising questions about job security, transparency, and career planning.
What Are Silent Layoffs?
Silent layoffs occur when employees are removed from positions without formal notice or public reporting. Companies often cite reasons such as automation, AI adoption, client cost pressures, or skill mismatches.
Firms use this approach for multiple reasons: automation and AI reduce the need for routine work, rapid technological changes create skill gaps, global economic pressures and reduced client spending push cost optimization, and discretion helps avoid negative publicity and legal complications. Some employees receive severance packages with confidentiality agreements, while those who remain often take on extra projects and longer hours, leaving many uncertain about their future.
Why It's Happening Now
The quiet churn in Indian IT isn't mysterious; it's mathematical. Automation and AI have begun trimming organizational fat once disguised as human coordination. Tasks like documentation, testing, and first-line support—defining entry- and mid-level roles—are now handled by scripts and algorithms, demanding precision over people.
Additionally, the old indulgence of non-billable overhead has ended; every function must now prove a direct line to revenue. When margins narrow, billability becomes critical, and anything not justifying its existence quietly disappears.
External factors also play a role: global clients, facing slower procurement and tighter budgets, are consolidating vendors, forcing Indian firms to run leaner benches and faster turnarounds. The once-forgiving cushion of bench time has flattened into a race for immediate utilization.
Underlying this is the skills paradox: parts of India's vast engineering workforce are outdated, with legacy stacks and narrow specializations faltering against new demands like full-stack engineering, platform fluency, data literacy, and everyday use of AI. These are now the baseline, and the rest is being automated out.
Subtle Signs Employees Should Watch Out For
Silent layoffs are rarely announced, so employees need to stay alert to subtle shifts in their work environment.
Changes in Workload and Project Assignments
Employees may notice responsibilities shifting, with key tasks reassigned or access to client projects reduced. In some cases, workloads suddenly increase with tighter deadlines, indicating how the company assesses each role.
Communication Patterns
A drop in communication can signal risk. Managers may avoid one-on-one discussions or give vague feedback about future work. Employees might be excluded from meetings or decision-making processes they previously attended, suggesting a diminishing role.
Performance Reviews
Unexpected changes in performance evaluations are another signal. Ratings may drop without clear explanation, feedback may focus on minor mistakes, and review sessions could be shorter or less detailed than peers', indicating evaluation for potential separation.
Team Dynamics
Shifts in team structure offer clues, such as colleagues leaving quietly, hiring slowing or stopping, and onboarding delays. HR and leadership behavior, like requests for extra documentation or discussions on reskilling or severance with confidentiality agreements, can reinforce risk.
External Signals
Industry updates, media reports, or LinkedIn posts may indicate restructuring at other offices. Employees should also consider personal risk factors, like roles being automated or skills no longer matching company priorities. Requests to document work in detail can be an early sign of review.
The Silence Before the Storm
Silent layoffs seldom make headlines, but they redraw careers in real time. As automation erases routine work and clients chase efficiency, the real contest is for reinvention. Winners will be those who read the fine print of change early—translating roles into measurable impact and adapting before algorithms make the call. In an industry obsessed with speed, foresight, not fear, will decide who stays on the payroll.
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