Brand Marketing
FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
AI-led disruption could lead to more layoffs, warns Nasscom
In a statement issued Monday, the industry body noted that companies are increasingly shifting towards AI-powered, product-centric delivery models, prompting a reassessment of legacy roles and structures.
Nasscom called for a national-level skilling strategy, led by collaboration between industry, academia and government, to future-proof India’s tech workforce and sustain its global leadership in the AI era.
India’s $250 billion IT sector is bracing for a new wave of workforce restructuring, as artificial intelligence reshapes how technology services are delivered. Following Tata Consultancy Services’ (TCS) decision to cut 2% of its workforce—amounting to 12,000 jobs—Nasscom has said that more layoffs and workforce transitions are likely across the industry in the coming months.
In a statement issued Monday, the industry body noted that companies are increasingly shifting towards AI-powered, product-centric delivery models, prompting a reassessment of legacy roles and structures. This transition, while essential for future-readiness, is expected to result in short-term job rationalisation, especially in roles misaligned with the demands of a digital-first economy.
“As businesses reorient to meet evolving client demands for speed, agility and innovation, the industry is witnessing a transformation that is redefining how technology services are conceived, delivered and consumed,” Nasscom said.
The organisation acknowledged that AI-led disruption—like earlier shifts to cloud computing or mobile—inevitably alters workforce needs. However, it stressed that these changes also create new roles and opportunities, and that reskilling and upskilling will be critical to managing the transition.
“Every wave of disruption brings new roles, new value chains, and new opportunities. The focus must now be on preparing the workforce for what’s next.”
Nasscom called for a national-level skilling strategy, led by collaboration between industry, academia and government, to future-proof India’s tech workforce and sustain its global leadership in the AI era.
“Talent building must be viewed as a national and business imperative,” the statement noted. There are already signs of progress. By the end of FY25, over 1.5 million professionals had received training in AI and GenAI-related technologies, and more than 95,000 employees from listed tech firms had completed advanced certifications in applied AI domains.
Industry experts believe TCS’ recent layoff could be the first in a broader trend, as clients increasingly link pricing to outcomes rather than effort, pushing IT vendors to deliver innovation at speed while reducing costs.
P&G Hygiene cuts ad spend by 55% to Rs 68.7 crore in Q1 FY26
Notably, P&G Hygiene's AdEx spending was also higher at Rs 121.16 crore during January-March period.