Upskill or risk losing job, IT firms warn employees as AI takes hold

India's top information-technology (IT) services firms are sending a clear message to their employees: Upskill and reskill for an age increasingly defined by artificial intelligence (AI) and generative AI (GenAI).

- AVIK DAS

Those unwilling or unable to adapt risk losing their jobs.

The $282 billion sector, employing around six million people, has long been one of the country's largest organized job creators. But the tone has shifted: Layoffs—described as "involuntary attrition" in industry parlance—have usually been handled discreetly, given the sensitivity. That discretion appears to be fading.

Industry body Nasscom has supported the move. "This shift is likely to reshape traditional service delivery frameworks and, in the near term, may lead to some workforce rationalization as traditional skillsets are re-evaluated," it said in a statement. The warning comes after two years of subdued growth, hit by geopolitical tensions, high inflation, and broader macroeconomic uncertainty.

With the outlook for the current financial year (FY26) appearing similarly muted and tariff threats looming, firms are now acting to protect their bottom lines.