Tech layoffs continue as Oracle cuts workforce in India; techies speak of mental, financial stress

Bengaluru: After Tata Consultancy Services (TCS), now Oracle—one of the world’s largest software companies—has announced job cuts, reportedly laying off nearly 10 per cent of its workforce in India.

Oracle recently deal with OpenAI

The development comes even as Oracle recently secured a high-profile deal with OpenAI and engaged in talks with US President Donald Trump, sparking speculation about the timing and reasons behind the sudden restructuring exercise.

According to reports, Oracle employed nearly 28,824 people in India as of 2024, spread across Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Noida and Kolkata. The layoffs are understood to have hit employees working in software development, cloud services and customer support divisions.

TCS's decision to lay off 12,000 employees

The latest layoffs at Oracle follow closely on the heels of TCS’s largest-ever retrenchment drive in July 2025, when the company announced around 12,000 job cuts—about 2 per cent of its global workforce.

The majority affected were mid- to senior-level employees, with TCS citing a skill mismatch and the urgent need to realign operations with evolving client requirements.

Industry observers say these moves point to a deeper structural reset in the Indian IT sector, rather than being solely an AI-driven phenomenon.

Structural issues such as over-hiring and changing delivery models

Analysts highlight post-pandemic over-hiring, bloated mid-level management layers and changing delivery models as key factors. They caution that this could be just the beginning, with a possibility of another 8–10% workforce reduction across the IT industry in the next 6–12 months, especially in legacy roles that are increasingly being automated.

Between January and April 2025, several other IT giants also downsized:

- Infosys let go of about 240 entry-level employees who failed internal assessments.

- Wipro reduced headcount by 3,785 employees in Q3, citing restructuring.

- HCL Technologies eliminated over 350 positions in February 2025.

- Cognizant laid off more than 500 employees in March, with similar moves echoed across the sector.

Stories from India’s Techies: Human cost of layoffs

Behind the numbers are thousands of employees facing uncertainty and hardship. Several affected techies shared their personal experiences of job loss and its devastating impact.

One employee said, “I was laid off due to organisational restructuring and the introduction of AI in my process. It has hit me very hard—I bought a 10-year-old 2BHK flat in July 2024, and just seven months later, in February 2025, I lost my job. With a 30-year home loan to pay and being the sole breadwinner caring for my mentally challenged brother, I’m surviving only on credit cards.”

Another techie shared his ordeal on Reddit after his layoff during a corporate merger.

He discovered that his role was not only continued but even upgraded after he was let go. “The company assured me it wasn’t about performance. Around 20 people from my team and 80 more in earlier rounds were laid off. Leadership said it was all about ‘vision and the future,’ and even my manager had no say in who was retained or dismissed.”

For many, the emotional toll is just as severe as the financial one.

A young techie from Bengaluru said, “I lost my job in July, but I still haven’t told my parents. I’m desperately trying to find work instead of going home helpless. Experienced professionals are still finding opportunities, but what about freshers like us? Where do we stand in this new IT world?”

In a post on X, a user called Wealth Whisperer shared a story of how her cousin purchased a Rs 1.3 crore flat in Bengaluru a couple of years back, with an EMI of Rs 78,000 a month, but has been laid off by Microsoft recently and is now living a very stressful life.

She suggested he sell the flat and move on with new plans. The post has sparked mixed reactions, with some questioning buying wealthy flats, while a few blaming the IT companies for sudden layoffs.

The bigger picture

The Oracle and TCS layoffs reflect a larger churn in India’s $245 billion IT services industry, where AI adoption, automation and efficiency drives are reshaping the workforce.

While companies argue that the restructuring is necessary for long-term competitiveness, the immediate reality is one of job losses, financial stress and rising insecurity among India’s tech workforce—especially among younger and less experienced employees struggling to find their footing.