80000 fired, 72% less recruitment… Is the IT sector with 72 lakh employees sinking?
GH News August 20, 2025 07:06 PM

The global tech industry is changing rapidly but this big change is making people in the industry unemployed. We are seeing its effect in India as well. If we talk only about the year 2025 then this year has not been special for tech jobs at the global level Indias IT companies are an example of this. Even experienced people are being fired from IT companies.
Why is pressure on Indian IT companies increasing?
The Indian IT sector employs 73 lakh people but it is facing shocks at this time. According to brokerage firm Kotak Institutional Equities large IT services firms have registered a decline in the fourth quarter of FY 2025. This has happened for the first time since June 2020 i.e. during the time of Covid.
Will layoffs continue?
The only financial year in which large scale recruitment was seen in the IT sector is 2022. Since then recruitment has been continuously slowing down. There were 13935 recruitments in the fourth quarter of the financial year 2025. Now this figure is said to fall by 72% in 2026.While 10 lakh recruitments were made by IT companies in FY22 recruitments have been steadily declining in the subsequent years due to geopolitical pressures and AI. Last year 7700 professionals (who had more than 15 years of experience) were fired from their jobs.
Which companies have already done layoffs?
According to data from industry trackers many big companies have done layoffs. Intel has done the most layoffs which is 20% of their global workplace. Microsoft has eliminated 15000 jobs TCS has eliminated 12000 jobs. Meta Google Amazon have eliminated between 20 to 25 thousand jobs. Apart from these Klaviyo has eliminated 20% of its employees in July Red Hat has eliminated 800 employees and Qorvo has eliminated 250 positions. However the exact numbers of Salesforce Cisco Oracle are not known yet. Along with this many other small startups are also included in this where 5 to 8 thousand jobs have been eliminated.
Is AI became the reason?
The reason behind job cuts is economic pressure and restructuring but this big change has also come due to the adoption of AI. Routine and mid-level roles are being automated rapidly this change is becoming a cause of unemployment. In the US alone more than 740000 employees have been fired across the industry since Covid in which the tech sector is said to be the biggest contributor.