India’s technology sector saw job reductions in 2025 as AI adoption reshaped hiring priorities across IT services, startups, and digital platforms. Companies adjusted workforce plans during the year across India to automate routine tasks, while policymakers and industry leaders flagged reskilling as a key response.
AI adoption and what changed
Companies increased the use of AI and machine learning tools to handle tasks once managed by large teams. As a result, roles tied to data entry, basic coding, and repetitive processes declined. Firms replaced recurring manpower costs with technology investments during the year.
Industry leaders publicly addressed the shift. Infosys co-founder N R Narayana Murthy stated that modern technologies would reduce routine roles. At the same time, the Economic Survey 2024–25 noted that emerging technologies are altering labour markets worldwide.
AI impact on workers and companies
Large employers reported workforce adjustments linked to automation. Tata Consultancy Services announced plans to reduce about 2% of its workforce, or nearly 12,000 employees, during 2025. However, employee unions claimed higher numbers, while the company later said around 6,500 roles were affected.
Other firms also reduced headcount. Reports indicated Infosys let go of nearly 800 freshers in April, a claim the company denied. During the year, Zepto laid off around 300 employees, while Ola’s AI arm, Krutrim, cut close to 200 roles as part of internal restructuring.
Supporting data and industry views
According to staffing firm Xpheno, about 7,700 senior professionals exited IT roles between mid-2024 and mid-2025 due to AI, automation, and economic pressure. Meanwhile, an EY study found that 24% of technology tasks can be fully automated, while time spent on another 42% can drop sharply.
EY India also reported that falling AI model costs supported faster adoption. OpenAI’s GPT API prices declined by nearly 80% over two years. As a result, sectors beyond IT, including banking, manufacturing, logistics, and healthcare, increased deployment.
How the transition is playing out
Recruiters reported a shift rather than a collapse in employment. Adecco India said over 60% of IT services firms deployed automation tools, while demand for AI and machine learning roles rose sharply. World Economic Forum estimates cited by industry leaders show long-term job creation depends on reskilling pace.
The data and statements cited by The New Indian Express indicate that workforce outcomes in India now hinge on training, redeployment, and readiness rather than job volume alone.
