TCS, Wipro, HCLTech, and Tech Mahindra have collectively laid off over 25,000 employees in the first half of 2025 — despite stable revenues and healthy margins — sending a signal CIOs couldn’t ignore. These weren’t routine job cuts. They reflected a deeper structural shift in India’s outsourcing model, shaped by pandemic-era overhiring and investor pressure toward AI-led delivery.
If we consider workforce reduction by Indian IT services firms over the past 18 months, we are staring at staggering 80,000 pink slips. TCS announced layoffs last week, with plans to cut 12,200 jobs by March 2026. Infosys shed 25,994 employees in FY24 and then terminated another 700 trainees in 2025. Wipro eliminated 24,516 roles in FY24, plus hundreds of mid-level positions recently. Tech Mahindra cut 10,669 jobs with 1,757 more departing in Q4 FY25 alone.
While the job cuts could bring cheer for investors, for CIOs, the fallout is far from cheerful — longer incident resolution times, fragmented delivery teams, and fewer experienced hands on complex accounts. Several outsourcing relationships are showing early signs of stress, particularly in security, application modernization, and high-stakes digital programs.
