In a surprising turn of events, the top six information technology services companies in India have reported a decrease in their total headcount for the fiscal year 2023-24. Companies such as TCS, Infosys, LTI-Mindtree, Tech Mahindra, and Wipro have all seen a reduction in their workforce, with only HCLTech bucking the trend by adding employees. The reasons behind this decline are attributed to the economic slowdown, automation, restructuring, and decreased discretionary spending.
Analysts suggest that this drop in headcount could be a result of excessive hiring during the Covid-19 boom and the ongoing contraction in demand within the industry. This trend is not unique to Indian IT companies, as global technology giants like Apple, Google, Amazon, and Microsoft have also announced job cuts in recent months. The tech startup scene in India and around the world is facing similar challenges, with many startups experiencing job cuts and declining valuations.
According to a report by Money Control, the Indian IT and ITeS sector is experiencing ‘silent layoffs’, with approximately 20,000 technology professionals affected by unannounced job cuts in 2023. The All India IT & ITeS Employees’ Union (AIITEU) suspects that the actual number of layoffs could be even higher. These job cuts are reportedly happening across companies of all sizes, with employees being subtly pressured into resigning or facing termination if they fail to secure a different position within the company.
Industry bodies like NITES have raised concerns about the unethical practices being employed by companies to dismiss employees, including forcing them to sign non-disclosure agreements in exchange for severance packages. The situation is dire for many tech professionals in India, as job security becomes increasingly uncertain in the face of industry-wide layoffs and restructuring efforts.