Layoff Worries Grip Indian GCC Workforce

Bengaluru: Employees of many Indian GCCs (Global Capability Centres) and top tech firms are living in anxiety with regard to job security on the backdrop of layoffs done by their parent entities in the US.

According to sources in the HR industry, the impact of AI is slowly making its presence felt in the global technology industry and India as a geography may not stay insulated for long.

Recently, layoffs in the global technology firms have increased, raising fears among Indian employees. Last month, Microsoft announced firing of 3 per cent of its employees or around 6,000 staffers, making its latest move to reduce headcount. Many of those affected employees were programmers, who have been affected as Microsoft’s AI-based programming platform, Copilot AI made coding automated to a significant extent. Last week, Microsoft-owned LinkedIn announced laying off around 250 employees. According to reports, this is part of company’s restructuring exercise.

Not only Microsoft, a host of global tech firms including Google, Meta, and Autodesk have reduced headcount in 2025. Experts are of the opinion that rising AI adoption is leading to automation of many tasks in these product firms, which are, therefore, cutting headcount to save costs.

Interestingly, most of the technology firms, that have laid off people in the US, have large technology centres in India. “All large US tech firms have development centres in India with thousands of workers operating on new technology areas. Though layoffs have not impacted India yet, these centres can’t stay immune to a larger trend in the market place,” said a HR person.

Sources in the know said that amid recessionary fears owing to US tariffs and acceleration of AI adoption, corporates are taking a wait and watch approach as of now.