White-collar job losses in India’s information technology sector have exceeded 30,000 in the first half of 2026 as major global companies restructure operations around artificial intelligence.
Microsoft and IBM are among the large technology employers that have announced layoffs tied to AI-driven reorganisation, eliminating tens of thousands of positions affecting Indian workers. The cuts span software development, consulting, and back-office functions that AI tools now handle with fewer human inputs.
India hosts millions of IT professionals who serve clients worldwide through outsourcing and product-development centers. The current restructuring cycle has hit experienced white-collar staff harder than earlier rounds focused on entry-level roles.
Company announcements link the workforce reductions to investments in generative AI, automated code generation, and cloud-based service delivery. Employees in cities such as Bengaluru, Hyderabad, and Pune have been affected by the consolidation.
The scale of layoffs in the first six months of 2026 represents one of the steepest declines in Indian IT employment linked to automation in recent years.
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Sources:
https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-june-05-2026