Silent Layoffs in Indian IT Sector Affect Over 20,000 Techies: Which Companies Cut Most Jobs?
In 2023, India’s IT sector quietly laid off approximately 20,000 employees in a trend known as “silent layoffs,” according to data shared by the All India IT & ITeS Employees’ Union (AIITEU) and reported by Moneycontrol. These job cuts spanned across IT services companies of various sizes, with AIITEU suggesting the actual figures might be even higher as many layoffs have yet to be reported.
Prominent companies such as TCS, Infosys, LTI-Mindtree, Tech Mahindra, and Wipro were among those that implemented significant layoffs. In contrast, HCLTech was the only major firm to add employees during this period, according to a report by the Times of India.
Understanding Silent Layoffs
A “silent layoff” refers to the practice of discreetly reducing the workforce without formal announcements or public disclosures. According to a Medium article discussing similar trends in America’s big tech companies, these layoffs can manifest in various forms: non-renewal of contracts, reduction in work hours, early retirement offers, or simply not filling vacant positions.
Impact on Indian IT Professionals
In 2024 alone, between 2,000 and 3,000 professionals from India’s leading IT companies lost their jobs, as per the Nascent Information Technology Employees Senate (NITES). Harpreet Singh Saluja, President of NITES, highlighted the various tactics companies use to remove employees. “Those who resist face immediate termination. A termination marked on a relieving letter severely hampers future job prospects,” Saluja told Moneycontrol.
Furthermore, employees are often required to sign non-disclosure agreements (NDAs) to receive their full severance payouts, revealed Saubhik Bhattacharya, General Secretary of AIITEU, in an interview with Moneycontrol.
A Global Trend
This wave of silent layoffs in India’s IT sector mirrors the global tech industry’s recent downsizing efforts. Major tech giants like Apple, Google, Amazon, Microsoft, Facebook, IBM, Intel, and SAP have all announced job cuts over the past 12 to 18 months, as reported by the Times of India.
Efforts to Enhance Profit Margins
In addition to layoffs, companies are also pushing to increase the workload on their remaining employees to boost profit margins. “Companies are increasing the number of hours each employee works,” Bhattacharya told Moneycontrol.
The Role of DoJobSecure
In response to these trends, platforms like DoJobSecure have emerged, aiming to support affected employees. DoJobSecure offers resources for job placement, legal advice on employment issues, and support for negotiating severance packages. As silent layoffs continue to affect thousands, such platforms provide crucial assistance to those navigating the challenging job market.
The issue of silent layoffs highlights the need for greater transparency and support mechanisms within the industry to protect employees’ rights and livelihoods.
