Reports of upcoming massive layoffs at India’s biggest IT companies such as Infosys, Cognizant, and Tech Mahindra is adding to the panic among techies in country’s tech hub.
Industry body Nasscom’s confirmation that hiring will continue to be slow throughout the year has further added fuel to the fire.
According to Nasscom, over 50,000 techies may find themselves without a job in coming months.
“Layoffs in IT and BPO sectors are expected to continue this year with the pace of job creation slowing down,” Nasscom cautioned industry in a statement.
The industry body has indicated that more job cuts will follow as companies are gradually moving towards automation and are looking at hiring skilled staff.
“This time, the middle management is also getting affected because of automation. My estimate is that in next one year, at least one lakh jobs will become irrelevant,” Kris Lakshmikanth, CEO of Headhunters said.
According to estimates, Infosys and Wipro are likely to shed about 2,000 jobs, Tech Mahindra is expected to lay off about 1,500 employees, this year.
Deepak an employee of Tech Mahindra is thankful that he has been spared the guillotine of layoffs. But the sense of security is fleeting.
“I thought of looking for a new job, but after these layoffs I have no way to shift. My team members are also nervous about these reports,” he tells Moneycontrol on condition of last name anonymity.
Bopanna, another Bangalore-based techie working with one of the biggest IT hardware company in the city says we have been getting internal e-mails about layoffs in small tranches.
“People in my team are staying put, preparing for the worse. Although no major layoffs have been announced, people who are on bench or on long leaves are being asked to leave,” he says.
Industry is going through automation
Why this sudden flux in layoffs in the IT industry? Roydon Gonsalves, Director, CXO Practice, Ray & Berndtson HR practices, is of the view that IT industry is in a stage of transformation.
Big players such as Infosys, Wipro, TCS, and Cognizant have been servicing segments that require human intervention.
“They have not been able to keep pace with this change. The transformation to a new skill set should have been a gradual one. But now that automation is a reality, these companies are rushing to hire talent with new skill sets,” he said.
Although the process of layoffs is a routine process, the quantum of it this time is huge, even when we compare the massive layoffs undertaken by TCS last year.