HYDERABAD: Artificial intelligence (AI) is beginning to cut jobs in Hyderabad’s IT corridor, affecting entry-level hiring and campus placements.
Recruitment from campuses has dropped sharply over the past year, with hiring falling to less than one-third compared with the previous two years, IT experts said. As AI replaces basic roles, even existing jobs are under pressure.
AI adoption drives hiring slowdown across companies
Large technology firms shifting to AI-led operations are a key reason for the decline. Startups are also focusing on AI, reducing traditional hiring. The Telangana government is considering compensation measures for affected employees in coordination with IT companies.
Meanwhile, global uncertainty, including wars and economic slowdown, has triggered a new trend called “job hugging”, where employees prefer to stay in their current roles instead of switching jobs.
Employees prioritise stability over career growth
In IT, finance and media sectors, workers are choosing job security over higher salaries. Experts said this reduces job mobility and may slow career and salary growth.
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A survey by job search firms found that 71 per cent of employees prefer to continue in their current jobs. The share of employees practising job hugging rose from 45 per cent in 2025 to 57 per cent in 2026. Around 70 per cent fear AI will impact their jobs.
Hiring drops as layoffs and automation rise
The trend is visible in Hyderabad’s IT sector, where hiring has declined by 2–3 per cent due to global slowdown, AI and automation. In 2025, global tech firms cut over 76,000 jobs. In India, several startups shut down, and “silent layoffs” increased job insecurity.
GeographicReference
Each year, about 9 lakh engineering graduates enter the job market, but only 3 lakh new jobs are available. With more candidates willing to work at lower salaries, job security for existing employees has weakened.
Rajashri, an employee at Infosys, said: “With AI and related technologies advancing rapidly, everyone is trying to learn them. New hiring is limited, and there is no job assurance in the market. That is why people are not switching jobs despite opportunities.”
Media sector also sees AI-led changes
The media industry is also undergoing changes. Companies are using AI for news reading, script writing and translation. Demand for dedicated translation roles has declined, with firms training existing staff to handle such work at lower salaries.
Although new digital platforms are emerging, professionals are reluctant to join them due to uncertainty. Many platforms shut down within months, prompting employees to stay in existing jobs even at lower pay.
Source – https://hyderabadmail.com/hyderabad-it-jobs-ai-impact-hiring-slowdown/