India’s top five IT giants—TCS, Infosys, Wipro, HCL, and Tech Mahindra—trimmed 7,000 positions in FY26, after adding 12,700 hires in FY25. The cut signals a strategic shift from sheer volume to skill‑centric recruitment.
The pivot is driven by AI’s ability to automate routine coding, testing, and data‑processing tasks. Neeti Sharma, CEO of TeamLease Digital, noted, “We’re seeing fewer headline layoffs, but more targeted exits and thinner middle layers.”
Despite the cuts, overall employment rose to 1.35 lakh in FY26, a modest uptick over 1.33 lakh in FY25. Anil Ethanur, co‑founder of Xpheno, said, “Large firms have already downsized and are now focusing on efficiency.”
Many companies are turning to Performance Improvement Plans instead of blanket layoffs. Ethanur added, “PIPs give a fair chance for employers and employees to improve before exit.”
Randstad’s Workmonitor study projects that 95% of employers globally will grow in 2026, though hiring will zero in on AI, cloud, and machine‑learning skills. Milind Shah, Managing Director of Randstad Digital India, warned that “jobs involving repetitive, rule‑based work are under pressure.”
Industry analysts expect the next wave of hiring to prioritize AI, ML, and cloud architecture, while traditional coding roles shrink. The upcoming Tech Workforce Outlook 2026, due next month, will chart the sector’s talent trajectory.