Sunday, September 7, 2025
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Bengaluru IT Sector Faces AI Disruption: 50,000 Jobs Lost in 2024

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Bengaluru, often referred to as the “Silicon Valley of India,” is grappling with one of its most severe job crises in recent history.

Over 50,000 IT employees were laid off in 2024, primarily due to the rapid adoption of artificial intelligence (AI) and automation.

This wave of layoffs has not only disrupted the lives of tech professionals but has also sent shockwaves through the city’s real estate market and local economy.

Industry experts and advocacy groups have called for immediate measures to address the crisis.

Suggestions include upskilling programs to help displaced workers transition to roles that require advanced technical skills, as well as government interventions to stabilize the real estate market.

There is also a growing emphasis on the need for a balanced approach to AI adoption, ensuring that technological advancements do not come at the cost of widespread job losses.

The Rise of AI and Automation and Its Impact on IT Professionals

The IT sector in Bengaluru has long been a cornerstone of India’s economic growth, employing millions and contributing significantly to the country’s GDP.

However, the advent of AI and automation has fundamentally altered the employment landscape.

Entry-level programmers, software testers, and other lower-wage tech roles have been increasingly replaced by AI systems capable of coding, debugging, and optimizing software with greater efficiency and at a fraction of the cost.

The layoffs have disproportionately affected lower-wage employees, many of whom relied on affordable housing options such as paying guest (PG) accommodations and budget rental apartments.

These workers are often the first to lose their jobs when companies implement cost-cutting measures or shift to AI-driven automation.

Real Estate Market in Crisis in Bengaluru

The mass layoffs have had a cascading effect on Bengaluru’s real estate market.

PG facilities and rental apartments, which were once in high demand among junior IT employees, have seen a sharp decline in occupancy rates.

This has led to financial strain on landlords and operators, many of whom had invested heavily in properties near tech hubs like the Outer Ring Road (ORR).

The drop in demand has also resulted in falling property values, leaving investors with vacant properties and diminishing returns.

The job crisis extends beyond the IT sector and real estate market.

Local businesses that catered to IT professionals, such as restaurants, cafes, and retail stores, are also feeling the pinch.

The reduced spending power of laid-off employees has created a ripple effect, impacting various sectors of the city’s economy.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus