India’s IT Industry May See Silent Layoffs in 2026: TeamLease

Globally, 120,346 employees have been laid off by 226 technology companies in 2026 so far… and according to a TeamLease report, India’s IT industry is witnessing a new phase of workforce layoffs and restructuring.

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Silent Layoffs Replace Large Public Job Cuts

India’s IT industry is witnessing a shift in how companies reduce their workforce.

Instead of announcing large-scale layoffs, many organizations are opting for “silent layoffs,” where employees exit through performance reviews, restructuring exercises, or role rationalization without formal announcements.

According to TeamLease, between 10,000 and 15,000 technology professionals may have already exited the industry through silent layoffs by May 2026. The staffing firm estimates total job losses could reach 25,000 to 35,000 by the end of the year.

CIEL HR Services offers a slightly lower estimate, saying around 12,000 jobs have already been eliminated in 2026, with total layoffs expected to reach between 18,000 and 21,000 during the year.

From Pandemic Correction to Workforce Restructuring

TeamLease says the industry’s focus has shifted significantly. While 2025 was largely about correcting excess hiring carried out during the pandemic, 2026 is centered on reshaping workforce structures to improve efficiency.

Rather than implementing broad-based layoffs, companies are now eliminating redundant positions, overlapping responsibilities, and unnecessary management layers as they redesign their operating models.

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Workforce Numbers Reflect the Shift

The trend is also visible in the employment data of India’s largest IT companies. Together, TCS, Infosys, HCLTech, Wipro and Tech Mahindra reported a net reduction of 7,389 employees in FY26, reversing the net addition of 12,718 employees recorded in FY25.

During the year, TCS reduced its workforce by 23,460 employees, while Infosys continued to expand its headcount by adding around 5,000 employees.

AI Changes Hiring Priorities

Industry executives say technology companies, Global Capability Centres (GCCs) and startups are restructuring their organizations by simplifying operations, removing overlapping roles and increasing the use of automation and artificial intelligence.

According to CIEL HR, workforce reductions are being driven by organizational restructuring rather than an overall decline in hiring.

Companies continue to recruit professionals with expertise in artificial intelligence, cloud computing, cybersecurity, platform engineering and engineering roles within GCCs, while routine and highly automatable roles remain under pressure.

Industry experts believe the ongoing changes represent a long-term transformation in workforce planning, with companies placing greater emphasis on skills that support AI-led growth and digital transformation.

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