AI DRIVES LAYOFFS IN IT SECTOR; RESKILLING IN FOCUS

AS artificial intelligence (AI) adoption accelerates, India’s information technology (IT) and startup sectors are undergoing a period of upheaval marked by job cuts and growing uncertainty over the future role of programmers and coders.

- SANAL SUDEVAN @Chennai

Recently, IT industry veteran and Infosys co-founder N R Narayana Murthy said modern technologies would eliminate routine roles in the sector. Echoing this view, the Economic Survey 2024-25 noted that emerging technologies pose both threats and opportunities for labour markets worldwide.

With companies increasingly focusing on machine learning (ML), the sector is likely to see elimination of mundane roles such as data entry and basic coding. Automating routine tasks helps firms reduce recurring manpower costs by replacing them with onetime capital investments in technology.

India’s largest IT services provider Tata Consultancy Services (TCS) undertook a major resizing exercise this year, announcing plans to lay off 2% of its workforce, or about 12,000 employees. However, employees and IT unions alleged nearly 38,000 staff were terminated in the second quarter. TCS stated it has so far laid off 6,500 employees.