IT Hiring Slowdown: Big Firms Cut Jobs Despite Sector Growth

India's major IT services companies, such as Tata Consultancy Services and Tech Mahindra, experienced a net workforce reduction of 6,981 employees during the fiscal year 2026. This contrasts with the 12,718 employees added in FY25, indicating a deliberate slowdown in hiring by large IT firms. Infosys, Wipro, and HCLTech continued to grow their workforce, but at a more controlled and reduced pace.

The primary drivers behind this cautious hiring strategy include ongoing demand uncertainty, delayed client decision-making processes, and the increasing integration of AI-driven efficiencies within operations. This signals a significant shift in workforce strategy across the industry.

There is a notable transition from a focus on scale-led expansion to a skills-first approach. Companies are now prioritizing specialized talent in areas such as artificial intelligence, cloud computing, data analytics, and cybersecurity. This pivot aims to enhance efficiency and adapt to evolving technological demands.

Despite the cautious approach of large IT firms, the overall Indian IT industry employment saw a slight increase. Nasscom reported a rise of 1.4 lakh employees, bringing the total headcount to 59 lakh in 2026. This growth was largely fueled by the expansion of Global Capability Centres (GCCs) scaling their India operations.

Looking ahead to FY27, the hiring outlook remains subdued. Active tech job openings in April 2026 stood at 110,000, an 8% decrease from the previous month. The IT services segment accounted for 43,000 roles, a 7% sequential and year-on-year decline, highlighting continued strain on India's primary tech employment sector.