With the golden run of the Indian IT industry long been over, layoffs have become the new normal.
India’s top three IT companies have seen more than 25,000 net employee exits in the six months to September, driven by cost-saving measures, unfilled job openings, and hiring curbs.
Companies and recruiters expect the labour market to remain weak for at least a couple of quarters, pending a rebound in deal flow and immediate needs that would require renewed recruitment.
“Cost optimisation is taking place either through vacancies that remain unfilled or some amount of natural attrition. Companies are also shrinking their workforce in the guise of poor performance,” said the chief executive of a frontline recruitment company.
On Wednesday, Tata Consultancy Services Ltd (TCS) reported a massive drop of over 6,000 employees in the September quarter. TCS officials said similar numbers on headcount reduction were expected in the future too.