In a discreet yet significant shift, India’s IT sector laid off approximately 20,000 employees in 2023 through a practice known as “silent layoffs.” This data, shared by the All India IT & ITeS Employees’ Union (AIITEU) and reported by Moneycontrol, reveals a growing trend among major IT companies such as TCS, Infosys, LTI-Mindtree, Tech Mahindra, and Wipro.
In contrast, HCLTech was the only major firm to expand its workforce during this period.
Silent layoffs, as described in a Medium article on similar practices in America’s big tech companies, involve discreet terminations where employees are let go without formal announcements. This can include non-renewal of contracts, reduction in work hours, early retirement offers, or simply not filling vacant positions.
The Nascent Information Technology Employees Senate (NITES) reported that in 2024 alone, around 2,000-3,000 professionals from India’s top IT firms lost their jobs.
Harpreet Singh Saluja, president of NITES, explained to Moneycontrol, “There are multiple ways in which companies are removing employees, and those who resist will be terminated immediately. Once your relieving letter marks you as ‘terminated,’ it becomes very difficult for that person to find another job.”
Moreover, employees are often required to sign non-disclosure agreements (NDAs) to receive their full payout, according to Saubhik Bhattacharya, General Secretary of AIITEU, who spoke to Moneycontrol. This confidentiality further complicates the ability of affected workers to seek new employment or discuss their circumstances openly.
The silent layoffs in India’s IT sector mirror a global trend, with tech giants like Apple, Google, Amazon, Microsoft, Facebook, IBM, Intel, and SAP announcing job cuts over the past 12-18 months, as reported by the Times of India. Companies aim to downsize and improve profit margins, which also includes increasing the workload on remaining employees, Bhattacharya noted.
The rise in silent layoffs indicates a shift in how companies manage workforce reductions, prioritizing discretion and minimizing public and media scrutiny. However, this trend raises concerns about job security and transparency within the industry, posing challenges for both current employees and those seeking new positions.
Read all the World News, Business News, Sports News, Entertainment News, Business News and Opinion here. Follow us on Facebook, Twitter and Instagram
