Is AI Responsible for Layoffs in Indian IT Industry?

There are multiple reasons why the layoffs have happened. Having worked (and still working) in the IT biggies, one thing I can say with surity is that about 10-15% workforce in these companies is either incompetant or caught up in the wrong job. When the business was up and margins were good, the companies bore the burden. But now, and especially now in the era of AI, the competitiveness has increased a lot. Just like tevhnology, even humans need to keep upgrading themselves. As my delivery head pointed out in a meeting, if your core competancy has remained same over a rolling period of 3yrs, its a sure shot receipie for getting laid off. Because if you arent adding value, you can be replaced by someone junior (and cheaper).

@mayur-ZkbMVQ - I 100% agree.

one thing I can say with surity is that about 10-15% workforce in these companies is either incompetant or caught up in the wrong job

This is so true. Especially in the bigger IT companies, people are stuck in the same role with similar tasks for years. No upskilling, no motivation to learn new things. Most simply to go office not to contribute; but to attend meetings.

Because if you arent adding value, you can be replaced by someone junior (and cheaper).

If an individual can switch companies for better salary and perks, the company can fire employees for cheaper and more efficient replacement. It's always a two-way street.

Especially the people who are in the 35+ age bracket are going to find it difficult to survive in the AI Tsunami. They're already drawing fat paychecks and most of them cant justify it.

@mayur-ZkbMVQ - agreed. the layoffs in the last two years were a result of overhiring in 2021-22. You are spot on with incompetant people sitting at key positions.

Juniors may not replace senior pros. but juniors with AI tools will surely do.