India’s IT majors trim nearly 3,000 jobs in Q3
India’s largest information technology services firms together reported a net reduction of close to 3,000 employees in the third quarter of the 2025–26 financial year, underscoring a structural shift in hiring as companies rebalance workforces around artificial intelligence, cloud platforms and higher-value digital engineering. Quarterly disclosures showed that headcount at several bellwether firms edged lower despite stable deal pipelines. The combined net decline, modest by historical standards, contrasted sharply with the aggressive campus hiring and broad-based workforce expansion that defined the sector for more than a decade. Executives and analysts pointed to a “barbell” pattern in demand, with strong hiring at the high end for niche digital and AI skills and limited intake, or attrition-led pruning, in legacy application maintenance and commoditised services. At Tata Consultancy Services, the country’s largest IT services exporter by revenue, total employee strength slipped during the quarter as voluntary attrition stayed elevated in certain service lines and fresh hiring remained selective. Infosys also reported a marginal fall in headcount, reflecting a focus on utilisation, internal redeployment and productivity improvements rather than large-scale lateral recruitment. Wipro and HCLTech posted similar trends, with management teams emphasising skill transformation over volume growth. The net reduction came even as revenue growth stabilised sequentially for most firms, helped by cost optimisation deals, vendor consolidation and demand for cloud migration. Industry executives said the hiring slowdown was not a signal of weakening fundamentals but a recalibration after years of overcapacity built during the post-pandemic surge in digital spending. What is different this cycle, analysts argue, is the depth of the technology shift reshaping delivery models. Generative AI tools, low-code platforms and automation frameworks are beginning to decouple revenue growth from headcount expansion. Routine coding, testing and support tasks are increasingly automated, reducing the need for large teams, while boosting productivity per employee. This dynamic has produced the barbell model now widely discussed in boardrooms. On one end, firms are competing fiercely for specialists in data engineering, AI model deployment, cybersecurity, semiconductor design services and advanced cloud architecture. On the other, demand for entry-level roles tied to traditional application development and infrastructure support has softened, leading to fewer campus offers and limited backfilling of exits. Management commentary during earnings calls reinforced this shift. Several chief executives highlighted large internal reskilling programmes, with tens of thousands of employees undergoing training in AI, machine learning and cloud-native technologies. The emphasis has moved from hiring for scale to building depth in targeted capabilities that command higher billing rates and longer-term client commitments. Client behaviour has also played a role. Enterprises in North America and Europe, which account for the bulk of export revenues, continue to scrutinise technology budgets amid macroeconomic uncertainty. Discretionary projects have faced delays, while spending has been redirected toward efficiency-led initiatives where automation is central. This has compressed demand for traditional staff-augmentation models that once absorbed large numbers of engineers. Despite the headline job losses, the sector remains a major employer, with total headcount across the top firms still running into the millions. Analysts caution against interpreting the quarterly decline as a broad-based contraction. Instead, they see a transition phase in which workforce pyramids are being reshaped to align with evolving client needs and delivery economics. Wage dynamics reflect the same adjustment. Salary hikes have been measured, variable pay has been linked more closely to utilisation and skill relevance, and onsite deployments have been rationalised. At the same time, niche talent continues to command premiums, widening pay dispersion within firms. The article India’s IT majors trim nearly 3,000 jobs in Q3 appeared first on Arabian Post.
India’s largest information technology services firms together reported a net reduction of close to 3,000 employees in the third quarter of the 2025–26 financial year, underscoring a structural shift in hiring as companies rebalance workforces around artificial intelligence, cloud platforms and higher-value digital engineering.
Quarterly disclosures showed that headcount at several bellwether firms edged lower despite stable deal pipelines. The combined net decline, modest by historical standards, contrasted sharply with the aggressive campus hiring and broad-based workforce expansion that defined the sector for more than a decade. Executives and analysts pointed to a “barbell” pattern in demand, with strong hiring at the high end for niche digital and AI skills and limited intake, or attrition-led pruning, in legacy application maintenance and commoditised services.
At Tata Consultancy Services, the country’s largest IT services exporter by revenue, total employee strength slipped during the quarter as voluntary attrition stayed elevated in certain service lines and fresh hiring remained selective. Infosys also reported a marginal fall in headcount, reflecting a focus on utilisation, internal redeployment and productivity improvements rather than large-scale lateral recruitment. Wipro and HCLTech posted similar trends, with management teams emphasising skill transformation over volume growth.
The net reduction came even as revenue growth stabilised sequentially for most firms, helped by cost optimisation deals, vendor consolidation and demand for cloud migration. Industry executives said the hiring slowdown was not a signal of weakening fundamentals but a recalibration after years of overcapacity built during the post-pandemic surge in digital spending.
What is different this cycle, analysts argue, is the depth of the technology shift reshaping delivery models. Generative AI tools, low-code platforms and automation frameworks are beginning to decouple revenue growth from headcount expansion. Routine coding, testing and support tasks are increasingly automated, reducing the need for large teams, while boosting productivity per employee.
This dynamic has produced the barbell model now widely discussed in boardrooms. On one end, firms are competing fiercely for specialists in data engineering, AI model deployment, cybersecurity, semiconductor design services and advanced cloud architecture. On the other, demand for entry-level roles tied to traditional application development and infrastructure support has softened, leading to fewer campus offers and limited backfilling of exits.
Management commentary during earnings calls reinforced this shift. Several chief executives highlighted large internal reskilling programmes, with tens of thousands of employees undergoing training in AI, machine learning and cloud-native technologies. The emphasis has moved from hiring for scale to building depth in targeted capabilities that command higher billing rates and longer-term client commitments.
Client behaviour has also played a role. Enterprises in North America and Europe, which account for the bulk of export revenues, continue to scrutinise technology budgets amid macroeconomic uncertainty. Discretionary projects have faced delays, while spending has been redirected toward efficiency-led initiatives where automation is central. This has compressed demand for traditional staff-augmentation models that once absorbed large numbers of engineers.
Despite the headline job losses, the sector remains a major employer, with total headcount across the top firms still running into the millions. Analysts caution against interpreting the quarterly decline as a broad-based contraction. Instead, they see a transition phase in which workforce pyramids are being reshaped to align with evolving client needs and delivery economics.
Wage dynamics reflect the same adjustment. Salary hikes have been measured, variable pay has been linked more closely to utilisation and skill relevance, and onsite deployments have been rationalised. At the same time, niche talent continues to command premiums, widening pay dispersion within firms.
The article India’s IT majors trim nearly 3,000 jobs in Q3 appeared first on Arabian Post.
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