The Indian technology sector is jittery due to unsettling and rapid layoffs by US companies. Microsoft, Meta, Amazon, Walmart, IBM and many other US-based tech giants have slashed thousands of jobs.
Till May 31, 2025, a total of 76,440 techies are impacted due to 326 rounds of layoffs by tech companies in 2025, as per TrueUp data, a tracker of tech layoffs globally.
This data reads as 506 job cuts per day so far in 2025.
Some of the reasons for layoffs are cost-cutting, reduction in IT budgets, uncertainties over the global economy, recession fear, and strong adoption of AI.
“Given the recent thaw in the tariff war between China and the US, it looks like the probability of US recession is reducing. Even if some parts of tariffs are restored, the US economy might have reasonable growth. AI-driven layoffs have also seen a spike in the recent past,” Saurav Ghosh, co-founder of Jiraaf, told GoodReturns.
Tech Layoffs:
YTD, tech companies imposed at least 326 layoffs, with 76,440 people impacted. In the previous year, 1,115 layoffs at tech companies were recorded, with 238,461 people impacted, which was 653 job cuts per day in 2024, as per TrueUP data.
Also, Layoffs.FYI who tracks layoffs in the US, highlighted 62,114 tech employees being laid off by 137 tech companies in 2025 so far. Surprisingly, a large number of government employees are also laid off. 61,296 government employees are laid off by DOGE, while the departure of 171,843 total federal employees is recorded YTD.
Biggest Layoffs by US Tech Companies in 2025:
– Dell Technologies laid off 12,000 employees. This is a 10% reduction in its workforce in the 2025 fiscal year, to 108,000 headcounts from 120,000 headcounts. Cost-cutting is cited as the main reason.
– IBM is cutting 8,000 jobs in the HR department. This move is part of IBM’s initiative to integrate artificial intelligence (AI) into its operations, especially in the back-office functionalities.
– In the league, the world’s largest retailer, Walmart, also sacked 1,500 people in May due to simplification of operations, restructuring, and adapting to the evolving technological trends.
– The largest tech player in the world, Microsoft, joined the bandwagon in May, with a 3% reduction in its workforce, which translates into 6,000-7,000 employees. This is the Bill Gates-backed company’s second layoff in 2025, also the highest since the mass firing of 10,000 employees in 2023. The strengthening of AI is the main reason, while Microsoft also revealed that they are making organizational changes for long-term success.
– Intel laid off 15,000 jobs, a 20% cut to its total workforce. This decision was due to a major restructuring of the organization under new CEO Lip-Bu Tan. As per reports, Tan is looking for a fresh round of job cuts in Q2 of 2025.
Other tech giants like Amazon, Meta and Google have also carried out several rounds of job cuts in 2025.
In Q1 2025, the U.S. workforce faced major disruptions driven by federal layoffs, corporate restructuring, cost-cutting measures, economic pressures, and financial distress across sectors. Federal agencies drove over half of all layoffs this quarter, with over 150,000 job cuts reported in February and March, as per the intelligence note.
Will Indian Tech Players Join the US Job Cuts Trend?
“Given these circumstances and the fact that Indian IT was already beaten, we believe the prospects are getting better. While immediate order flows will not dramatically increase, a more steady path of IT service will blend in with AI adoption,” Ghosh’s note said.
The Indian IT services players reported a weak March 2025 quarter because of delays in project ramp-ups and a cautious spending stance adopted by a few verticals in the run-up to the reciprocal tariff announcement. The mid-tier companies like Persistent, Mphasis, and others outperformed tier-1 companies like TCS, Infosys, Wipro, and HCL Tech.
“Headcounts increased across companies, indicating that they were building up capacity for growth but faced deterioration in demand toward the latter half of the quarter,” analysts of Kotak Institutional Equities said in a note for Indian tech companies.
Tata Consultancy Services: By the end of Q4FY25, the total headcount of TCS stood at 607,979 employees, adding 614 people on a quarter-on-quarter basis and 732 people on a year-on-year basis.
Wipro: The Azim Premji-backed company has a total headcount of 233,346 employees by Q4FY25.
Infosys: At present, Infosys has 323,578 employees in its ambit as of March 31, 2025.
HCL Tech: The Shiv Nadar company has a total headcount of 223,420 employees as of March 31, 2025.
Tech Mahindra: This company has 148,731 employees by the end of Q4.
| Headcount of Indian IT Companies In Q4FY25, FY25 | Q4FY25 | Q3FY25 | Q4FY24 |
|---|---|---|---|
| TCS | 607,979 | 607,354 | 601,546 |
| Wipro | 233,346 | 232,732 | 232,614 |
| Infosys | 323,578 | 323379 | 317240 |
| HCL Tech | 223,420 | 220,755 | 227,481 |
| Tech Mahindra | 148,731 | 150,488 | 145,455 |
Who Hired the Most in Indian IT Companies in Q4FY25?
Among the top five tech players, HCL Tech takes the lead with 2,665 net additions in workforce on a quarter-on-quarter basis, while Tech Mahindra let go of 1,757 employees on a QoQ basis in Q4FY25. The hiring in TCS, Wipro, and Infosys slowed to 625, 614 and 199 net additions.
On a year-on-year basis, unlike the rivals, a total of 4,061 employees exited HCL Tech from March 2024 to March 2025. The highest hiring took place at TCS and Infosys, by 6,433 and 6,338 employees YoY. Tech Mahindra added 3,276 new employees to its workforce YoY.
Net Additions And Exits Of Employees In Indian IT Companies In Q4FY25 (1).png
Freshers Hiring in FY26?
However, the hiring outlook in the Indian IT sector is bleak as the adoption of AI intensifies.
For the Indian tech industry, AI-led efficiency and automation are top priorities for clients. Also, companies are embedding GenAI, LLMs, and agent-based architectures into core delivery, moving beyond pilots to scalable platforms, as per the NASSCOM report.
AI-centric deals across the portfolios are seen in the Indian tech industry.
Despite this, many larger IT players are looking to hire freshers in FY26. TCS EVP and CHRO Milind Lakkad announced the process of hiring 42,000 trainees in FY26; however, the target is unchanged from FY25 fresher hiring.
Wipro plans 10,000 freshers hiring in FY26, focusing on a balanced approach.
Meanwhile, Infosys mulls hiring over 20,000 freshers in FY26. Freshers recruitment is also among the key agenda items in FY26 for HCL, who hired about 1,805 freshers in Q4FY25. Additionally, LTTS seeks to onboard 2,500 freshers in FY26, with the expectation of 500 onboarding in Q1FY26.
Among the mid-tier companies, Coforge indicated hiring people with AI, analytics, and cloud-related skills. Persistent currently has 2,755 Salesforce-certified experts, followed by Coforge with 830 and Mphasis with 231, data from NASSCOM revealed.
For FY26, the tariff hike from US will play a key role in the Indian tech industry’s growth.