India’s technology sector is witnessing a quiet but significant churn in 2025, as “silent layoffs” continue to displace thousands of workers across major IT firms.
Unlike formal mass terminations, these layoffs are often informal, unannounced, and executed through internal pressure tactics—such as nudging employees to resign or seek roles elsewhere.
Industry estimates suggest that over 50,000 tech jobs could be affected by the end of the year, marking a sharp escalation from previous years.
What Are Silent Layoffs?
Silent layoffs refer to workforce reductions that are not publicly declared or formally communicated as layoffs.
Instead, companies may encourage employees to resign voluntarily, reassign them to less desirable roles, or delay internal transfers and promotions.
These tactics allow firms to reduce headcount without triggering public scrutiny or regulatory obligations.
According to a report by The Economic Times, the trend has intensified in 2025, with Tata Consultancy Services (TCS) alone expected to reduce 2% of its workforce—roughly 12,000 employees—by March 2026.
While TCS’s move was publicly acknowledged, many mid-sized and large IT services firms are quietly trimming staff without formal announcements.
Scale of Impact and Industry Estimates
Between 2023 and 2024, silent layoffs reportedly affected around 25,000 tech professionals.
This year, experts predict that the number will double, pushing the total to 50,000 or more by December 2025.
The layoffs are concentrated in roles that are being automated or restructured, including legacy software maintenance, manual testing, and support functions.
A separate tracker by TechCrunch notes that over 22,000 tech jobs have already been cut in 2025, with 16,000 layoffs occurring in February alone.
These figures include both formal and silent layoffs, underscoring the scale of disruption in the sector.
Drivers Behind the Layoffs
The primary driver of these layoffs is the rapid adoption of artificial intelligence and automation.
As companies pivot toward AI-driven solutions, traditional roles are being phased out or consolidated.
A report by TechGig highlights that firms like Infosys, Wipro, and TCS are restructuring teams to focus on data engineering, cloud platforms, and product innovation.
Cost optimization is another factor.
With global economic uncertainty and pressure on margins, companies are seeking ways to reduce overhead without damaging their public image.
Silent layoffs offer a way to manage workforce costs discreetly.
Employee Experience and Challenges
For affected employees, silent layoffs can be emotionally and professionally destabilizing.
Many report being sidelined from projects, denied internal transfers, or asked to resign without clear justification.
The lack of transparency makes it difficult to seek legal recourse or plan career transitions.
HR experts warn that such practices can erode trust and morale across organizations.
While companies may avoid public backlash, they risk long-term reputational damage and internal disengagement.
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