Indian IT lays off staff, calls it restructuring; AI tasks need human effort
On October 21, 2025 Indian IT firms announced a wave of staff reductions, branding the move as “restructuring.” The story, titled “Indian IT is Laying Off Employees and Calling It ‘Restructuring’,” points out a trend: companies seem to frame cuts as a push for agility and skill realignment, a narrative that feels a bit dressed up.
At the same time, developers aren’t buying the idea that automation will instantly fill the gaps. One developer remarked, “Guiding an AI agent to perform technical tasks correctly demands significant human effort and time.” That comment highlights a growing tension, while firms hype AI as a productivity lever, the reality on the ground appears to need more human oversight than the headlines suggest.
The piece ties the layoffs to the larger debate over AI’s role in IT services, hinting that any efficiency gains might be offset by the labor required to train, steer and validate machine-driven work. So the “restructuring” label raises the question: how much of this shift is truly technology-driven, and how much stems from other strategic motives?
Developers point out that guiding an AI agent to perform technical tasks correctly demands significant human effort and time. - Published on October 21, 2025 - In IT Services Indian IT is Laying Off Employees and Calling It ‘Restructuring’ The narrative is being dressed up as agility, skill realignment, and organisational shifts. The top five Indian IT companies are shrinking, quietly, and calling it everything except what it is—restructuring, AI-driven transformation, workforce optimisation, or organisational agility.
But all of these eventually mean the same—inevitable layoffs. And the signs are already there. TCS alone lost over 19,700 employees in Q2 FY26, marking its largest quarterly headcount decline ever.
Infosys, HCLTech, Wipro, and Tech Mahindra added people sequentially, but barely enough to offset the numbers TCS let go. The net addition across all five firms was just 2,686 employees. Compared to H1FY25, hiring has plunged 79.25%, according to a report by Moneycontrol.
The narrative is being dressed up as agility, skill realignment, and organisational shifts. TCS chief HR officer, Sud 📣 Want to advertise in AIM? Book here Mohit Pandey Mohit writes about AI in simple, explainable, and often funny words.
He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI. Related Posts Is Agentic Coding Just a Smart Intern Pretending to Know More? Bengaluru’s Innovation Mojo, Now Shifting to Mysuru?
Over the last five years, Mysuru recorded 47 new companies and the expansion of 11 existing ones. How AI Could Transform Health Insurance in India Early risk detection with AI helps employees stay healthy and manage healthcare expenses Tally Solutions Bets on AI to Simplify Business for SMEs Tally Solutions is redefining SMEs’ tech experience, proving that true innovation lies in simplicity, not scale.
Companies in India's top IT space are calling the recent layoffs “restructuring”, but that sounds more like a soft word. Developers aren’t buying it. They point to tight deadlines and the fact that guiding an AI tool still takes a lot of human effort, so the promised speed-ups might be exaggerated.
Firms brag about agility, skill shifts and new org charts, yet the quiet headcount drop at the five biggest players hints at a deeper push to trim staff. It’s still unclear whether AI will actually cut jobs or just move work around. The buzz-filled story gives us little clue about real productivity gains.
As a result, workers feel uneasy and outsiders wonder if the restructuring line is covering a bigger strategic pull-back. Without clear numbers on how AI stacks up against human work, the cost-benefit picture stays fuzzy. Bottom line: the announced moves mix cost-saving with tech rollout, but we don’t yet know if AI will replace or simply augment people.
More in Business & Startups
AI shifts hiring: companies favor generalist engineers over specialists
Why are hiring managers rethinking their talent playbooks? The rise of AI tools is nudging firms...
Rivian showcases new AI chip and silicon inspection labs in office tour
Rivian is opening its doors to a behind‑the‑scenes look at the hardware that could define the next...
Anthropic's AI store profits as CEO acknowledges eternal transcendence
Anthropic’s new AI storefront is finally turning a profit, a milestone that feels almost ceremonial...
Gnani.ai launches Vachana STT model as core IndiaAI infrastructure
Gnani.ai, the Bengaluru‑based speech‑technology firm, has just put its newest speech‑to‑text engine...
PC Company Invests in AI Engines, Context‑Aware Computing, Intelligence
A PC maker long known for assembling laptops and desktops is now positioning itself as a backbone...
Common Questions Answered
How are Indian IT companies framing the staff reductions announced on October 21, 2025?
Indian IT firms are presenting the layoffs as 'restructuring' rather than straightforward job cuts. They describe these workforce reductions using terms like agility, skill realignment, and organizational shifts to frame them as strategic business transformations.
What do developers say about the human effort required for AI tasks?
Developers emphasize that guiding AI agents to perform technical tasks correctly demands significant human effort and time. They point out that steering AI through technical work requires considerable human input, suggesting that promised efficiency gains from automation may be overstated.
What pattern does the article identify in how Indian IT companies handle workforce changes?
The article identifies a pattern where companies present workforce trimming as a drive toward agility and skill realignment rather than acknowledging it as straightforward layoffs. This narrative is described as being 'dressed up' to make staff reductions appear more strategic than they actually are.
What skepticism do developers express about AI-driven efficiency gains?
Developers remain skeptical about the promised efficiency gains from AI automation, citing real-world constraints and time-intensive guidance requirements. They stress that significant human effort is still needed to steer AI agents through technical work, challenging the notion of instant automation benefits.