The Indian tech sector is facing a difficult time at the moment, largely due to AI. IT giants like TCS, Wipro, and Infosys have been facing fears of a SaaSpocalypse due to AI tools like Anthropic’s Claude Cowork. While companies have made sweeping layoffs in recent months, new hirings are also said to be drying up.
As per Xpheno’s Active Tech Jobs Outlook report for June 2026, active openings stood at 93,000 – a 28-month low. That is, this is the least number of active tech jon openings in India in the past 28 months.
To give you some context, the active openings stood at 1,08,000 – a drop of 14 per cent in a month – the steepest month-over-month decline in the past 12 months as per the report.
According to Neelabh Shukla, the chief business officer of Careernet, this decline could be attributed to AI. He tells India Today Tech, “AI adoption in software development is now becoming mainstream and is starting to impact tech hiring globally. India, in particular, is seeing a sharper short-term effect given we are a high volume tech hiring market.”
And this decline is across different sectors. IT services, tech startups, software products, also witnessed major declines. GCCs or Global Capability Centres were the only field that saw an increase in openings by 31 per cent year-over-year at 17,000 roles. Though this was still 6 per cent less than last month.
H-1B Indians returning to tough market
What makes matters worse here is the fact that thousands of Indians who recently lost their jobs in the US may be returning to India. Xpheno co-founder Kamal Karanth says, “Considering the current dynamics and trends of active demand in the Indian job market, this is definitely not the best of times for US-settled H1B talent to return to India.”
Most Indians in US tech jobs are said to be on H-1B visas, which is tied to an employer. If you lose your job on an H-1B visa, you are given 60 days to find a new company or are expected to return home. That is, many Indian techies could be looking for new jobs in India at a time when job openings are declining, likely making the job market even tougher.
In the past three years, while thousands of Indians have gone to the US on H-1B visas, the report states, many have been coming back. While 12,300 more Indians went to the US than those who moved back in 2023, this surplus stood at 6,100 last year.
Keep in mind that the US has enforced stricter immigration policies. H-1B visa holders now need to go back to their home country before they apply for a Green Card. Karanth added, “It would not be surprising if the recent H1B move causes the returnees count to surpass the count of outbound tech talent to the US this year.”
Though authorities have clarified that those who can prove that work benefits the economy or serves the national interest will be allowed to stay in the US for the process.