The Indian IT sector is currently experiencing a wave of ‘silent layoffs,’ which have reportedly affected over 20,000 workers, according to the All India IT & ITeS Employees’ Union (AIITEU).
According to a report by Moneycontrol, the period from 2023 to 2024 saw thousands of employees in IT services quietly let go due to a challenging demand environment. These “silent” layoffs occurred across firms of all sizes, with employees being subtly pressured into resigning.
AIITEU data indicates that approximately 20,000 workers were discretely laid off in the IT/ITeS sector in 2023. In 2024, the Nascent Information Technology Employees Senate (NITES) estimates that an additional 2,000-3,000 professionals lost their jobs at leading Indian IT services companies. A common tactic in these silent layoffs involves giving employees 30 days to find a new role within the company; failure to do so results in their departure.
Saubhik Bhattacharya, General Secretary of AIITEU, mentioned that employees are sometimes required to sign non-disclosure agreements (NDAs) to receive their full severance pay.
The AIITEU suspects that the actual number of layoffs might be higher than reported. The union also noted an increase in working hours for remaining employees, many of whom now work 14-16 hours daily, compared to 10-12 hours previously.
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Several employees and industry insiders informed to news agencies that these practices are prevalent at companies such as Accenture, Cognizant and Infosys. Multiple sources indicated that Infosys alone asked nearly 200-500 employees to resign voluntarily in 2024.
Infosys and Atos Group have denied these layoffs. Shaji Mathew, Group Head of Human Resource Development at Infosys, while speaking to Moneycontrol stated, “We would like to clarify that there have been no layoffs at Infosys. As an organisation, we have consistently focused on high performance and exemplary work ethics. We are continuously investing in reskilling our employees for seamless career transitions, aiming to keep all our employees qualified and proficient in an increasingly AI-powered global industry ecosystem.”
Experts note that Indian heritage IT services providers have shifted their operating models, aiming to ensure every technical employee becomes a billable resource. This means each employee is assigned to a project where a client compensates the company for the work performed.
Industry experts consider this period one of the highest in terms of layoffs since the financial crisis of 2007-2008.
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