AI automation drives job cuts in India's IT sector

The Indian IT sector is experiencing significant job losses as artificial intelligence automates roles in coding, testing, customer support, and project management. Tata Consultancy Services, the nation’s largest IT employer, reduced its headcount by more than 23,400 employees during the fiscal year ending March 2026.

Oracle is also reportedly planning further layoffs in India as part of a global restructuring and shift toward AI infrastructure spending. This follows a 13% workforce reduction during Oracle’s 2026 fiscal year. TeamLease Digital estimates that approximately 40,000 layoffs have occurred across India’s technology ecosystem over the past year, affecting many mid-level managerial roles.

Experts suggest these cuts represent a structural rather than cyclical correction. A report from NITI Aayog warned that AI-driven automation could potentially displace up to two million jobs within India’s tech services sector by 2031. The industry currently employs nearly 5.8 million people and generates roughly $315 billion in annual revenue.