Layoffs in IT, services sectors: How terrible is the condition?

Headline 1: "Paytm CEO hints at layoffs, expects near-term financial impact due to disruptions in Q4."

Headline 2: "TikTok to lay off up to 1,000 operation and marketing employees as US ban looms."

The above headlines pertain to developments this week. If the news reports and online chatter are anything to go by, India should brace up for the next round of layoffs. There is a view that AI and suspected downturn are going to eat into revenues of IT companies and layoffs are inevitable. As per anecdotes on social media, Broad-ridge has laid off 300 employees with May 31 being the last day.

An Indian techie's one-day-old tweet about layoffs has so far garnered nearly 3 lakh views on X. "Layoffs are going on in full swing in the IT sector! Every day, I hear of instances of people losing jobs. Companies are consolidating like crazy," he wrote.

It is believed that the ongoing wave of layoffs is going to be temporary. "This is merely a correction. The market is healing itself," an analyst wrote.

How has the situation been in recent years, especially post-pandemic? "Over the past three years, an estimated 190,000 Indian tech employees have been laid off, among which nearly 70,000 were laid off in the ‘Big Four’ of India’s tech giants alone and an estimated 37,000 laid off in over 130 start-ups. Industry giants such as TCS, Infosys, and Wipro have undergone substantial restructuring, shedding tens of thousands of jobs across several quarters," a recent News18 report said.

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