According to India Today, tech layoffs across India and global companies increased on April 3, 2026, as firms including Oracle, Amazon and Microsoft cut jobs, raising questions about AI impact and past overhiring.
At the same time, layoffs have spread across IT services firms and startups, indicating that the trend is not limited to a single segment. Companies are adjusting workforce size while also changing how work is structured. Therefore, tech layoffs now reflect both short-term cost corrections and longer-term shifts driven by automation and evolving business models.
What changed in tech layoffs across industry
Tech layoffs now affect multiple segments, including IT services, startups, and global firms. Companies such as TCS and Infosys show workforce adjustments through delayed onboarding and internal changes.
At the same time, startups like Zepto reduced headcount. Therefore, layoffs are no longer limited to a single category of companies.
Moreover, this spread of tech layoffs across sectors shows a wider shift in the industry. Companies are aligning hiring with demand, while also focusing on efficiency and automation. As a result, workforce changes are becoming more frequent and structured across different types of organisations.
Impact on IT Sector Layoffs and Workforce
IT sector layoffs reflect both cost control and operational shifts. Companies are reducing roles linked to repetitive work while focusing on smaller, efficient teams.
As a result, layoffs are reshaping workforce structures. Employees now face changing job roles and evolving skill requirements.
At the same time, companies are investing more in automation and AI tools to improve productivity. This shift allows organisations to deliver similar output with fewer people. Therefore, IT sector layoffs are also pushing employees to adapt quickly, learn new technologies, and stay relevant in an AI-driven work environment.
AI and Overhiring Driving Tech Layoffs
Experts state that layoffs result from both overhiring correction and AI adoption. Murali Vivekanandan said improved AI capability is influencing how companies operate and structure teams.
At the same time, Vivek Khemani said the IT sector is shifting toward a “services as software” model. This change reduces dependence on labour-heavy operations. Therefore, tech layoffs reflect a broader transformation in business models and workforce planning.
Hiring trends and skills shift
Despite tech layoffs, hiring continues in specific areas. Companies are recruiting for AI-related roles such as engineers and system specialists.
At the same time, AI skills and human-centric abilities such as design and systems thinking are becoming important. As a result, layoffs and hiring now occur simultaneously in different segments of the job market.
