India workforce undergoes restructuring in corporate and space sectors

India is experiencing a shift in its employment landscape characterized by targeted corporate restructuring and debates over the role of state institutions. In the private sector, layoffs in 2026 have expanded beyond the IT industry to include banking, e-commerce, fintech, and media. These cuts are largely driven by automation, AI adoption, and cost optimization rather than broad economic downturns. For instance, TCS recently cut approximately 12,200 jobs, representing nearly 2 percent of its workforce, while simultaneously hiring for specialized AI and cloud roles.

In the public sector, staff unions at the Indian Space Research Organisation (ISRO) have petitioned Chairman Dr V Narayanan for clarity regarding the government’s privatization drive. Representing approximately 5,000 employees, nine major unions expressed concerns that the agency’s core engineering and manufacturing divisions might be phased out in favor of private firms. The unions seek a roadmap that distinguishes between supporting private sector growth and dismantling ISRO’s institutional expertise and specialized safety capabilities.