Silent layoffs hit Indian IT sector, over 20,000 affected
NEW DELHI, INDIA — India’s IT sector has been significantly affected by a wave of ‘silent’ layoffs between 2023 and 2024, with approximately 20,000 tech professionals losing their jobs.
According to the All India IT & ITeS Employees’ Union (AIITEU), the actual number could be higher but remains unreported, as these layoffs have occurred across IT services firms of all sizes.
Major companies implementing silent layoffs
Silent layoffs, a discreet method of employee reduction, have become a common practice among firms. The most prevalent method involves giving a worker 30 days to secure a new role within the same firm. If unsuccessful, the employee is asked to leave.
Several major companies have been identified as implementing silent layoffs. US-based Teradata, a cloud analytics and data platform company, axed around 35-40 employees from its Hyderabad campus at the end of 2023. This followed a global layoff of approximately 1,100 employees in 2022.
Boston-based financial services firm State Street, which took over Atos Syntel’s operations last year, reportedly let go of around 400-500 employees in March 2024 as part of streamlining operations.
Reports indicate that similar layoffs are occurring across Accenture, Infosys, and Cognizant. In 2024, Infosys reportedly asked nearly 200-500 employees to resign voluntarily.
However, both Infosys and Atos Group have denied these allegations of layoffs. Industry experts have labeled this period as one of the highest layoff years since the financial crisis of 2007-2008.
Economic pressures driving workforce reductions
Yugal Joshi, leader of technology services research at Everest Group, attributes challenging macroeconomic scenarios to the layoffs.
He stated, “All of them promised to maintain or increase operating margin and for a service company beyond people reduction there are not many credible levers.” Joshi expressed concern about service providers trimming their smaller-sized clients, as lost clients are rarely regained.
The silent layoffs in India’s IT sector reflect a broader trend of cost-cutting and efficiency measures in response to economic pressures and technological advancements. As the industry navigates these challenges, the impact on the workforce remains significant and far-reaching.
