Silent Layoffs May Cut 35,000 IT Jobs in 2026

India's technology industry is witnessing a new wave of job cuts, but this time many employees are leaving quietly without any official layoff announcements. Industry experts say silent layoffs are becoming increasingly common as IT companies focus on improving efficiency, reducing costs, and adopting artificial intelligence.

According to staffing firms, thousands of technology professionals have already lost their jobs in 2026, and the number could rise significantly by the end of the year.

Thousands of IT Jobs May Be Lost in 2026

Industry estimates suggest that between 25,000 and 35,000 technology jobs could be cut during 2026. Several recruitment firms report that a large number of employees have already exited companies through performance-based evaluations, restructuring, and role eliminations rather than public layoff announcements.

Experts believe the trend is part of a major transformation in India's IT services industry, which is adjusting after the rapid hiring seen during the pandemic.

AI and Automation Driving Workforce Changes

Unlike previous rounds of layoffs that were mainly linked to weak business demand, the current job reductions are being driven by automation, artificial intelligence, changing skill requirements, and organizational restructuring.

Many companies are removing duplicate roles, reducing middle-management layers, and streamlining operations to improve productivity.

Hiring Continues for High-Demand Skills

While some traditional roles are disappearing, companies are still recruiting professionals with expertise in emerging technologies.

Skills currently in demand include:

Artificial Intelligence (AI) Cloud Computing Cybersecurity Platform Engineering Global Capability Centre (GCC) Engineering Roles

Experts say professionals with updated technical skills continue to have better employment opportunities despite the ongoing workforce changes.

Major IT Companies Restructure Workforce

India's leading IT firms have also reported changes in employee numbers over the past year. Some companies reduced headcount, while others added employees in specialized roles.

Industry analysts say the focus has shifted from mass hiring to selective recruitment based on future business needs.

Experts Call It Workforce Realignment

HR experts believe the current trend should not be viewed as a complete decline in employment but rather as a shift in how technology companies operate.

Businesses are increasingly moving away from labor-intensive models and investing in automation and AI-driven productivity. As a result, routine jobs are under pressure, while specialized technology roles continue to grow.

The ongoing changes indicate that India's IT industry is entering a new phase where continuous upskilling and expertise in advanced technologies will play a key role in long-term career growth.

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