Silent Sacking: The Unseen Impact on India’s IT Sector
These silent layoffs have become commonplace, leaving employees in a precarious situation. Harpreet Singh Saluja, president of the Nascent Information Technology Employees Senate (NITES), explains, “Those who resist will be terminated immediately. Once your relieving letter marks you as ‘terminated,’ finding another job becomes incredibly difficult.”
The Indian IT sector, once hailed as a beacon of growth and opportunity, is now grappling with a silent crisis. Behind the scenes, thousands of tech professionals are losing their jobs, and the repercussions are far-reaching. Let’s delve into this hidden phenomenon and explore its implications.
The Silent Layoffs
According to data from the All India IT & ITeS Employees’ Union (AIITEU), approximately 20,000 techies faced ‘silent’ layoffs in the Indian IT/ITeS sector during the calendar year 2023. But here’s the catch: AIITEU believes the actual number is even higher, yet to be fully reported. These layoffs cut across IT services companies of all sizes, leaving a trail of uncertainty and anxiety.
So, what exactly is a silent layoff? It’s a discreet way of letting employees go. Instead of abrupt terminations, companies give employees a 30-day window to find a new role within the same organization. If they can’t, they’re asked to leave quietly. No fanfare, no farewell parties—just a silent exit.
The Human Toll
These silent layoffs have become commonplace, leaving employees in a precarious situation. Harpreet Singh Saluja, president of the Nascent Information Technology Employees Senate (NITES), explains, “Those who resist will be terminated immediately. Once your relieving letter marks you as ‘terminated,’ finding another job becomes incredibly difficult.”
Employees are often coerced into signing non-disclosure agreements (NDAs) to receive their full payout. And it doesn’t end there. Existing employees are now expected to work longer hours—14 to 16 hours a day—compared to the 10 to 12 hours they put in just a couple of years ago. The drive to downsize and improve profit margins has led companies to push their workforce to the limit.
No Company Is Immune
These layoffs cut across company sizes and reputations. Teradata, a San Diego-headquartered cloud analytics and data platform company, laid off about 35–40 employees from its Hyderabad campus last year. State Street, a Boston-based financial services company, streamlined operations by letting go of around 400–500 employees in India. And it’s not just them—Accenture, Cognizant, and Infosys are also part of this unsettling trend.
Infosys, for instance, reportedly laid off nearly 200–500 employees across campuses in 2024, albeit by asking them to resign voluntarily. Both Infosys and Atos Group deny any layoffs, but the ground reality tells a different story.
The Industry’s Dilemma
Experts call this one of the record-highest layoff years since the 2007–2008 financial crisis. Service providers are trimming smaller clients, knowing that once lost, these clients rarely return. But it’s not a mass layoff; it’s structured. Companies stagger the process, letting go of 10 to 20 employees each month across different offices. It’s subtle, almost invisible.
The top five Indian IT services companies—Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra—have seen an overall headcount decline in FY 24. Over 69,000 employees lost their jobs, signaling a seismic shift in the industry.
The Billable Resource Model
Indian heritage IT services providers are changing their operating models. They aim to make every technical person a billable resource—someone deployed in projects where clients pay for their work. It’s a survival strategy in a dynamic market where technology evolves rapidly.
As the silent sack grips the Indian IT sector, it’s time to acknowledge the human cost behind the numbers. The invisible layoffs may not make headlines, but they leave an indelible mark on lives and livelihoods. The future of work demands resilience, adaptability, and a collective commitment to safeguard the workforce against silent upheavals.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
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