Indian IT giants see net headcount drop as AI reshapes hiring
Major Indian technology services firms reported a 3% reduction in total staff, with exits outpacing hires in IT and engineering roles.
Across India's top technology services firms, the combined workforce fell by nearly 3% to 797,722 in October 2026, down from 822,144 a year earlier, according to Xpheno. The decline reflects 24,422 fewer hires than exits over the last twelve months, despite attrition rates remaining at the industry-typical 11-15%. Company leaders say AI is reducing demand for routine IT tasks, leading to lower replacement hiring for roles like application maintenance, manual testing, infrastructure support and L1/L2 services.
At the same time, demand for AI, cloud, cybersecurity and specialized engineering positions is rising about 16% year-on-year. Firms are also cutting bench talent in a low-growth environment, though some, such as TCS, HCLTech and Tech Mahindra, reported hiring gains in the September quarter while Wipro reduced staff.
Why it matters
The shift signals how AI is changing employment patterns in India's large IT sector, affecting millions of workers.
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