Surge in IT Layoffs in India Amid AI Integration: Over 100,000 Jobs Lost in 2025

India's IT sector is experiencing a significant transformation in 2025, characterised by widespread layoffs as companies adapt to the growing influence of artificial intelligence (AI). Since January, over 100,000 technology professionals have lost their jobs, surpassing the total number of layoffs in 2024. This trend reflects a broader industry shift towards automation and AI-driven operations. Major Companies Implementing Layoffs Tata Consultancy Services (TCS): Reduced 12,261 employees, approximately 2% of its workforce, citing skill mismatches and the need to realign its workforce with AI-driven solutions. HCLTech: Eliminated over 350 positions in February 2025, emphasising that AI is being used to augment jobs rather than replace them, alongside initiatives for re-skilling and up-skilling employees. Oracle: Laid off around 3,000 employees, representing 10% of its Indian workforce, due to AI restructuring efforts. Wipro and Tech Mahindra: Collectively laid off over 25,000 employees in the first half of 2025, despite stable revenues, signalling a structural shift in outsourcing models. Industry-Wide Implications The widespread layoffs are driven by the adoption of AI technologies, automating roles in coding, testing, and customer support. Analysts estimate that up to 500,000 IT jobs could be impacted in the coming years due to automation. In response, companies are investing in re-skilling programmes to help employees transition to new roles. For example, over 217,000 employees have completed 8.6 million training hours, including digital skill training for 16,000 employees. Looking Ahead As AI continues to reshape the IT landscape, companies are focusing on integrating AI to enhance productivity and reduce costs. While this shift boosts efficiency, it also presents challenges in workforce displacement and underscores the need for continuous skill development. The ongoing layoffs reflect a broader trend of AI-driven transformation in the global tech industry.