India’s top IT firms TCS, Infosys, Wipro and HCLTech have together reduced their headcount by over 42,000 employees in the past two years. While these numbers may seem alarming, they are not necessarily signs of a recession or AI-driven job erosion.
A significant portion of these layoffs is attributed to performance-related evaluations.
"Many companies, including these IT giants, follow a routine workforce optimization process every six months. Underperforming employees are let go, while hiring continues in other areas based on project demand and skill requirements", says Rakesh Kulkarni, a HR Manager in a Multinational IT Company.
"Hiring is happening in parallel across departments, clearly indicating that the industry is still actively seeking competent talent. The evolving tech landscape demands adaptability and ongoing skill development, making competency a key factor in both hiring and retention. However, much of the public conversation is skewed towards layoffs, overlooking the fresh recruitment happening simultaneously", he affirms.
This creates unnecessary panic, when in reality, the industry is simply recalibrating to stay competitive.
For job seekers and professionals, the key takeaway is to stay updated with new technologies and sharpen their skills. Companies are not downsizing to cut costs, but are looking for the right talent that can match the pace of tech innovation.
Instead of fearing layoffs, it’s more useful to focus on growth, upskilling and being flexible. The IT sector is still growing — it just wants people who are ready to grow with it.
