By Admin 
The Indian IT sector has seen rapid changes in the last two years. Companies, which did huge recruitment after the pandemic, are now focusing on reducing costs due to AI, automation and weak global demand. For this reason, many big companies reduced the number of employees in FY26, while the pace of new recruitment also slowed down.
How many layoffs took place this year?
The total employee count of five big IT companies of India i.e. TCS, Infosys, HCL Tech, Wipro and Tech Mahindra has decreased in FY26. According to media reports, a total reduction of about 7,000 employees was recorded in these companies, whereas in the last financial year FY25, these companies had made net recruitment of more than 12,000 employees. The biggest impact was seen in TCS, where workforce restructuring was done.
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How is the appraisal happening now?
Despite layoffs, companies have not stopped increasing salaries completely, but appraisals have become much lower than before. Like TCS has emphasized on performance based salary hike. Infosys is also increasing the salary of selected employees on the basis of performance. Employees with AI and digital skills are getting better opportunities.
At the same time, HCLTech is focusing on skill-based rewards and critical talent retention. Wipro’s appraisal is completely based on business performance and personal assessment. Tech Mahindra is giving appraisal to the people who perform well with the cost. Now the era of one-size-fits-all appraisal is almost over in the IT sector. Only employees with good skills and performance are getting higher increases.
What changed in the salary structure?
While earlier the emphasis was on increasing fixed salary, now companies are focusing more on variable pay, performance bonus and skill incentives. Employees who specialize in technologies like AI, cloud computing, cyber security, data engineering and generative AI are getting better packages, while salary hike for older IT support and maintenance profiles is quite limited.
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Hiring has stopped?
Hiring has not stopped completely, but bulk hiring is not being seen in companies like before. Freshers are being taken, but the number is limited. There has been a decline in lateral hiring. Recruitment continues in new technologies like AI, cloud, cyber security and data analytics. Recruitment in mid-level management has slowed down considerably. Many companies are now increasing the use of AI tools to get more work done with fewer people. This is why the hiring strategy is also changing.
What is the difference between last year and this year?
| Last year (FY25) | This year (FY26) |
| Net hiring over 12,000 | Reduction in staff of about 7,000 |
| norm appraisal cycle | Limited and Performance Based Approval |
| mass campus hiring | Selective Recruitment and Skill Based Recruitment |
| Focus on increasing headcount | Focus on productivity and AI |
| Old IT roles are most in demand | Highest demand for AI and digital skills |
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What should employees do?
The IT sector is not in complete recession, but is going through a phase of change. Opportunities still exist for employees who have skills in new technologies like AI, cloud, data analytics, cyber security and automation. At the same time, reskilling and upskilling has become more important than ever for those working in old profiles.