Are Indian IT companies taking the silent route of layoffs?

Some Indian companies, particularly in the IT services sector, are laying off employees quietly, or may say they are implementing “silent layoffs” or “quiet layoffs”, according to an association. This means that workers feel pressured to leave independently due to difficult working conditions.

This strategy allows companies to save money by avoiding severance pay for employees who voluntarily resign. Additionally, it deliberately fosters a negative work atmosphere by promoting overwork, delaying promotions, and neglecting to provide adequate support.

Layoffs pose a significant financial burden for companies because they are required to offer severance packages to affected employees, a Harvard Business Review report said. Additionally, a study by US think tank Pew Research Center found that the top reasons workers left their jobs in 2021 were low wages, limited advancement opportunities, or a feeling of disrespect.

“Silent shooting” in India

This trend is also gaining ground in India. According to the Moneycontrol report, the All India IT & ITeS Employees’ Union (AIITEU) said that around 20,000 technology professionals were quietly laid off in the IT/ITeS sector in 2023. These layoffs affected companies across the board. sizes within the IT services sector.

Companies make the decision to lay off employees based on their professional situation. Teradata, a San Diego-based company specializing in cloud analytics and data platforms, laid off about 35 to 40 employees at its Hyderabad campus late last year. The move follows a previous wave of layoffs in 2022, in which around 1,100 employees were laid off globally. Teradata has more than 10,000 employees worldwide, as listed on LinkedIn, the report said.

Additionally, last year, Boston-based financial services firm State Street took control of its joint venture partner Atos Syntel’s operations in India. Moneycontrol reported that as of March 2024, around 400-500 employees have been laid off in India as part of operational rationalization. In 2024 alone, the nascent Senate of Information Technology Employees (NITES) said around 2,000 to 3,000 professionals lost their jobs among India’s largest IT services companies.

Citing multiple sources, Moneycontrol mentioned that Infosys is reported to have laid off nearly 200-500 employees across its campuses in 2024, urging many of them to resign voluntarily. However, Infosys and the Atos group have denied these reports.

Also read: Major layoffs in 2024: Tesla, Apple, McKinsey, Google, Amazon and more