Tech layoffs: Indian IT sector hit by silent layoffs, with employees asked to choose voluntary resignation or termination, affecting over 20,000 people, says report

Bombay, May 28: Tech layoffs around the world are a concern for many IT employees. The 2024 wave of layoffs has affected thousands of employees of various technology companies such as Google, Apple, Meta, Amazon, Paytm and others like Elon Musk’s Tesla. In India, layoffs have also had a significant impact on working IT professionals. According to a report, more than 20,000 employees have been affected by the silent layoffs implemented in the IT sector in India.

Money control reported that data shared by the All India IT and ITes Employees’ Union showed that more than 20,000 IT professionals have been affected by the silent layoffs in the technology sector. The report mentions an incident with a 31-year-old technician named Akash, who received an email from the company’s director and HR manager for a virtual meeting lasting 15 to 20 minutes. Paytm layoffs: Fintech major to lay off 5,000-6,300 employees, plans to use AI to cut costs, says report.

The report mentions that Akash was offered two choices by his cloud analytics company and his data company, Teradata. The choices were: dismissal with lower compensation or voluntary resignation with four months’ salary. As it was difficult for Akash to leave the company one way or the other, he had to take a decision only during the virtual meeting. He said Money control that he asked the manager and the human resources manager to give him some time to determine, and he was told to inform during the conference only. Speaking to his cousin, he decided to choose voluntary resignation, the report said.

The report highlights that after participating in 20 to 25 interviews four to five months after his resignation from TeradataAkash did not land any new jobs. He said it is difficult to land a new job in the technology sector due to the current market situation, especially when there is little chance of negotiating salaries. He added that he was dependent on his parents because his severance pay was drying up. Foursquare layoffs: US-based technology company cuts 25% of its workforce to streamline operations and achieve financial sustainability.

Another incident involved Cognizant’s Sriram, who was asked to resign because the company couldn’t find other projects for him. In recent months, the report said employees were asked to voluntarily resign during silent layoffs at Cognizant. It says Akash and Sriram were just two of thousands of such people between 2023 and 2024.

(The above story first appeared on LatestLY on May 28, 2024 12:37 PM IST. For more news and updates on politics, world, sports, entertainment & style life, log in to our website Latestly.com).