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Layoffs in IT Companies 2025: Building a Future-Ready Workforce Through Upskilling
The Indian IT services industry is going through a significant transformation this year. It generated uncertainty among companies, ranging from innovative startups to established giants, because of rapid AI adoption, changing client requirements, and an immediate need for cost optimization. Almost as a correlative effect to this transformation have come bold AI-led layoffs 2025 in IT companies.
What was once considered the major name for employment security and global outsourcing is now under a period of IT layoffs 2025, in most eyes called the 2025 Crisis. Nonetheless, the layoffs in India are not an economic collapse indicator; rather, they appear because aging skill sets are disappearing fast in an accelerated technology world. Jobs once thought worthy of money are being eliminated by automation or redefined by generative AI; hence, companies will have to rethink how to manage their workforce from now onwards.
Companies such as TCS, Wipro, and various startups have let go of thousands of employees in record time. But these are not traditional layoffs; rather, they paint a picture of a deeper shift in the whole strategy of working. It is not just “being experienced” nowadays; the workers must be AI-ready. The higher urgency now really brings into focus training and retraining under the AI shadow as the permanent answer to workforce sustainability and business continuity.
Key Takeaways
- Layoffs in IT Companies 2025: Highlighting structural skill shifts instead of economic collapse.
- India had over 12,000 cuts at firms like TCS, therefore affecting mostly mid- to senior-level talent. This is consistent with TCS layoffs 2025 news and TCS layoffs 2025 details.
- Across India, many companies in the IT sector are now carrying out layoffs in India in 2025 with skill-based entrance training programmes.
- Companies that provide and invest in upskilling, reskilling, and development in the age of AI retain their talent and reduce their replacement cost.
- Corporate training offerings by AITD meet industry needs directly, and new roles such as generative automation and project analytics
- Strategic training turns risk into capacity, redeployment, and longer-term growth.
The Landscape of Layoffs in IT Companies 2025
Starting mid‑2025, with the TCS layoffs news 2025 announcing a reduction of workforce among major IT players, about 2% of its workforce—all global staff of 12,000 at about mid-level and senior-level placements—was laid off. It thus was considered one of the largest cuts in the list of companies’ layoffs in 2025 in India. The triggers were skill mismatch, less bench utilization, and changing client demand—were they not due to recession?
Infosys, on the other hand, chose not to lay off any employees, instead hiring many more employees. The core of their ever-so-loud messaging is reskilling. This is where the difference lies between upskill/reskill firms and those that have to react to unfolding market pressures.
| Company | Number of Employees Laid off |
|---|---|
| Tata Consultancy Services | 12,000 |
| Santander UK | 2,000 |
| Intel | 24,000 |
| Indeed, and Glassdoor | 1,300 |
| Microsoft | 9,000 |
| Intel (additional layoffs) | 10,000 |
| Procter & Gamble (P&G) | 7,000 |
| Microsoft (additional layoffs) | 7,000 |
| Telefonica | 4,000 |
| PwC | 1,500 |
| Crowdstrike | 500 |
| United Parcel Service (UPS) | 20,000 |
This shows that the trend of layoffs in IT companies in India is not isolated restructuring of workforces worldwide. In fact, experts often compare these developments with the WARN layoff list in the US, where companies are legally required to declare upcoming job cuts in advance.
Why Are These Layoffs Happening?
The big question often raised by both professionals and the media is, why are companies laying off employees in 2025?
1. Displacement of Jobs by AI and Automation
Artificial intelligence-powered programmes such as Microsoft Copilot, Microsoft layoffs, Google Gemini, and OpenAI APIs automate coding, quality assurance, and documentation—the archetypal traditional jobs!. These AI-led layoffs 2025 underline how automation redefines workforce structures.
2. Skill Mismatch
Even after years of experience, mid-level professionals cannot manage cloud computing, AI, analytics, or product-orientated development. This anomaly is leading to an increasing bench strength and a pool of useless talent, fuelling the layoffs of 2025 in both startups and large enterprises.
3. Cost Pressures and Demand for Efficiency
Faster, smarter, and more cost-effective models have become the demand of the day from the client’s side. With such huge expectations to meet, companies are now cutting off interest to non-billable resources, which also contributes to the layoffs in IT companies 2025 in India, especially in metros as well as in Tier-2 cities.
4. Lacking a Culture of Learning
Layoffs happen due to an outdated learning mindset where upskilling is voluntary and never seen as mission-critical.
Did You Know?
The Indian AI market is set to grow to $17 billion by 2027. This growth is fuelled by more businesses using AI and a strong talent pool.
Real‑Life Example: The TCS Restructuring
TCS introduced a bench policy: in 35 days, an engineer not assigned to any project has to be either retrained or shown the exit door. Some were absorbed into new digital projects after undergoing corporate training modules. Over 65% of the bench force were essentially realigned to new roles in digital projects after undergoing layoffs in IT companies’ training and corporate training modules.
The AI Imperative: Training Can No Longer Wait
Training and upskilling today have become absolutely vital pillars for business continuity and innovation in the age of AI. The CIO and CHRO strategists understand that retraining is far cheaper than hiring. What is missing is a scalable, role-aligned learning architecture offered by the best IT training companies.
Where Should IT Companies Focus Their Training Efforts?
| Learning Area | Why It Matters |
|---|---|
| Generative AI Training | Enables prompt engineering and AI-tool integration (e.g., ChatGPT, Gemini, Bard) |
| AI Ethics & Governance | Encourages responsible use of AI in enterprise projects |
| ML Engineering | Bridges technical gaps between data and product teams |
| AI for Project Managers | Helps align AI capabilities with business needs |
| Cloud-AI Integration | Drives scalable, efficient, and AI-ready infrastructures |
Now layoffs in IT companies 2025 training in India are being included in training programmes in India for IT companies during offboarding so that the laid-off employees remain future-ready.
How Is This Different from Previous Layoffs?
Unlike an economic downturn, which is a market failure in itself, the present scenario of mass IT layoffs in 2025 in India arises out of technology acceleration. Even going concerns are restructuring to be able to put AI-first business models into operation.
This marks a shift in the trend of layoffs in IT companies in India; through this, corporate or organisational learning becomes one of the greatest retention and transformation tools in the year 2025.
Suggested Read: Elevate Your Workforce: Top Corporate Training Programs for 2025
What Is One Major Thing Companies Are Overlooking?
Strategic L&D Planning While companies are laying off in thousands, many have failed to invest early in structured learning programs. Upskilling should not be reactive—it should be proactive.
A recurring mistake is the lack of alignment between future project needs and employee development. Companies are spending on certifications but ignoring role-readiness.
A successful upskilling strategy includes:
Role mapping.
Impact-driven training (not just certifications).
Immediate deployment post-training.
Real-time assessments.
Companies ignoring this are falling into a cycle of layoffs in the IT sector today, followed by rehiring, leading to higher operational costs.
Did You Know?
Nearly 64% of Indian IT companies in 2025 integrated generative AI tools, but only 38% of employees felt confident using them in live projects—highlighting the need for the companies with the best training and development programs.
What Are the Long-Term Impacts of Not Upskilling?
Without robust upskilling and reskilling, organisations risk:
Losing valuable projects because their workforce is not prepared.
Having poor client satisfaction and delayed deliveries.
An increase in attrition and a slow brand reputation.
A reduced return on investment for employee development.
In the long run, companies that initiate AI training jobs and role-based development will provide the best talent, close long-term deals, and later build internal innovation capacity with help from the best IT training companies.
How Can Training Reduce Future Layoffs?
Training, when aligned to business goals, can:
Redeploy employees into new-age projects;
Reduce severance costs through internal mobility;
Build talent pipelines for AI-first services;
Enhance employer branding as a learning-forward organisation.
This is why many enterprises are tying training programs directly to promotion paths, internal job postings, and performance appraisals.
What’s the Role of Learning Partners in All This?
Partnering with experienced training providers can accelerate upskilling still faster. Especially if companies may not know where to begin, partnering with experts can:
Provide a ready-to-roll curriculum.
Tailor content to business needs.
Offer data-driven assessments of impact.
Support change management initiations.
One such partner is the Amity Institute of Training & Development (AITD)—among the companies with best training and development programs in India.
Is Your IT Leadership Ready to Drive Transformation, Not Termination?
Bridge the Skills Gap: How AITD Can Help IT Companies Thrive in 2025
AITD operates at the intersection of corporate learning and real project minefields. Here’s how AITD’s offerings map to the challenge of AI-led layoffs 2025 and tech companies layoffs 2025:
Bespoke AI upskilling courses blended with contextual business cases across finance, retail, and telecom sectors
Comprehensive generative AI training delivered via cohorts and workshops that mirror client scenarios
Deployment‑oriented AI training jobs: simulated project assignments to validate newly trained skills
Gap analysis and upskilling and reskilling in the age of AI roadmaps that align with client pipelines
Redeployment support—helping firms retain talent by mapping employees into new roles post‑training
In short, AITD transforms training from a checkbox activity into workforce transformation aligned to business goals.
Final Thoughts on Layoffs in the IT Sector
The latest layoff news in India with Oracle, TCS, Microsoft, and Walmart paints a concerning picture and yet opens opportunities for re-examining workforce development. Learning new skills and retraining for an AI future is something that might convert the so-called indispensability of the profession to resilience. It is with the right training partner, such as AITD, that even this is possible, practical, and profit-orientated.
The latest layoff news in India may seem alarming; with Oracle layoffs India, TCS layoffs 2025, Microsoft layoffs, and Walmart layoffs making headlines, the message is clear: companies must proactively align skills with digital transformation.
With the right training partner, such as AITD, firms can retain talent, cut costs, and build an innovation-ready culture. In fact, investing in structured learning strategies is the only way to reduce future IT layoffs while building a future-ready workforce.
These WARN layoffs and the list of companies layoffs 2025 may look alarming at present; however, this also draws a clear signal: continuous learning and upskilling need to be an option – it is survival now.
Is Your IT Team Equipped to Survive The 2025–2026 Tech Disruption Wave?
Namit
Namit Chauhan is a skilled professional with experience in digital marketing, content creation, and business administration. He holds an MBA in IT & Finance from Amity University and a BBA in International Business. He has demonstrated abilities in developing and executing marketing campaigns, creating engaging content, and contributing to organisational goals.
Frequently Asked Questions
Get answers to commonly asked questions about Amity.
What is driving the major IT layoffs in 2025 in India?
The Indian IT layoffs of 2025 are really being caused not by an economic collapse but mainly by AI automation, skill mismatches, and cost pressures.
Which tech companies are leading the layoffs in India in 2025?
The Indian layoff news for 2025 highlights the tech industry layoffs that will mainly affect the mid- to senior-level roles, where TCS, Microsoft, and Intel are some of the major companies involved.
How are layoffs in IT companies and training helping employees in 2025?
Some firms have started providing training to laid-off IT employees during the offboarding process to reskill them for AI-first jobs and help them remain employable.
What are the top training programs to overcome AI-led layoffs 2025?
The courses in generative AI, ML engineering, and AI for project managers provided by the companies with the best training and development programs are enabling the workers to move into the new-age roles.
Why are companies laying off employees in 2025 despite growth in the Indian AI market?
Despite the growing AI market in India, the mismatch between current skills and future jobs points to employees getting laid off in 2025, unlike companies investing in reskilling.
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