Global technology companies have implemented significant workforce reductions in India, with Oracle, PayPal, Amazon, Adidas and Meta together trimming 12,000–15,000 roles in the last 12 months as part of worldwide cuts. According to global layoffs tracker layoffs.fyi, around 122,000 people were laid off in 2025, while close to 130,000 have been let go so far in 2026. The job cuts are concentrated in engineering, support and sales functions, reflecting global restructuring and AI-driven efficiency efforts. India's IT hubs, including Bengaluru, Hyderabad, Pune and Chennai, are among the worst hit by these reductions.
India's workforce expansion is projected to accelerate significantly in the second half of FY27, with 60% of employers planning to expand their workforce according to TeamLease Services' latest Employment Outlook Report. The Net Employment Change (NEC) is expected to reach 5.4% for October 2026-March 2027, up from 4.7% in H1 FY27, representing the highest level of employment growth in the past three half-year periods. The expansion will be led by e-commerce and technology startups (12.6% NEC), travel and hospitality (12.3%), and retail (10.3%) sectors. As per TeamLease Services Senior Vice President Balasubramanian A, this growth reflects businesses aligning talent decisions closely with changing demand, though employers face challenges in ensuring hiring plans translate into the right capabilities on the ground.
India's top five IT firms have shed nearly 7,000 jobs so far in fiscal year 2026 (FY26), reversing earlier expansions and slowing fresher hiring. The technology sector is at the epicentre of AI impact, with companies reallocating budgets from legacy functions to cloud, data and AI infrastructure. Routine coding, testing and back-office roles are shrinking, while demand is rising for niche skills in cybersecurity, product design and advanced analytics. Economic pressures including rising input costs, funding slowdowns at startups and global market uncertainty are adding to the workforce churn. However, the measured pace of AI adoption suggests organizations are finding the right balance between technology and human capability.
Despite technology sector reductions, India remains a key offshore base with firms continuing to invest in specialized talent. Global capability centres (GCCs) are projected to add 120,000 specialized roles in 2026, according to UnearthInsight. These centres, run by global banks, retailers, pharma, hospitality and other companies hire talent in AI, data, cybersecurity, and product engineering. Seasonal hiring remains strong with the festive season expected to generate 200,000–250,000 gig and retail jobs in logistics, e-commerce, and hospitality sectors. The automotive sector (10.1%), EV and EV infrastructure (9.7%), and banking (9.2%) also show strong hiring intent, reflecting continued demand across digital, consumption-led and emerging sectors.
Despite widespread AI adoption, there's a significant gap between AI implementation and workforce integration. 85% of employers report some level of AI or GenAI use, but only 13% have adoption across more than half of their workforce. This indicates that AI adoption remains broad but shallow, with organizations largely integrating AI tools into existing roles rather than undertaking extensive workforce redesign. Among cities, Bengaluru leads hiring intent at 68%, followed by Hyderabad at 61% and Pune at 60%. However, 72% of employers planning workforce expansion expect moderate to significant difficulty in hiring, with IT (39%), sales and marketing (38%), and engineering (32%) facing the highest anticipated hiring challenges. The average time-to-fill for roles stands at 35-45 days, with specialist and site-based positions taking longer. The report also flagged new labour codes as potential compliance factors, with 39% of respondents expecting higher compliance and payroll administration effort following the changes.
