Silent layoffs sweep Indian IT under ‘performance’ cover
Quiet exits, shrinking bench time and AI disruption drive unseen job losses in IT sector
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Silent layoffs are quietly rising in the Indian IT industry, with thousands of employees reportedly losing jobs over the past year through performance-linked exits and forced resignations, according to industry sources and employee associations.
While large-scale layoffs by firms such as Oracle and TCS have been publicly acknowledged, a far greater number of job cuts are happening discreetly under the guise of performance appraisals, they said.
“Mass layoffs are visible, but silent layoffs are happening daily across Indian IT companies. We have seen several instances of forced resignations in recent quarters,” a spokesperson of the Forum of IT Professionals said. Fear of blacklisting and difficulty in securing new roles have deterred many employees from filing formal complaints, he added.
Though global technology firms have been cutting jobs aggressively over the past year, India’s IT sector had remained relatively stable until recently. However, Oracle’s reported move to lay off around 12,000 employees in India as part of a global workforce optimisation drive has raised concerns. Sources said even employees who joined just 2–3 months ago were affected.
Major domestic firms have also seen workforce reductions. TCS’ headcount is estimated to have declined by about 30,000 in the last six months amid AI-led restructuring. Infosys, meanwhile, reportedly laid off around 700 freshers last year after they failed internal assessments required for project deployment.
Experts say “silent firing” or involuntary attrition has long existed in the industry but has intensified with the rise of AI. Bench periods, the time employees wait between projects, have shrunk sharply from 30–60 days earlier to around 15 days now. Employees who remain unassigned beyond this period increasingly face the risk of termination.
With automation reducing manpower needs, companies are maintaining minimal bench strength and slowing hiring. At the same time, lower attrition levels indicate fewer employees are voluntarily leaving, reflecting a cautious job market.
