IT Jobs: 1.34 lakh global tech layoffs, yet TCS, Infosys and Cognizant plan 80,000 hires — Why?

Artificial Intelligence (AI) is changing the way India's information technology (IT) companies hire, train and retain employees, with demand rising for specialised talent and advanced digital skills, according to a recent report by brokerage CLSA.

The report said AI is creating a need for more skilled professionals across employee levels, leading companies to offer higher salaries for candidates with niche capabilities. While concerns over automation and job losses continue globally, Indian IT firms are maintaining their fresher hiring plans and investing heavily in reskilling initiatives.

According to CLSA, hiring practices across the sector are evolving rapidly as companies adapt to the AI era. Traditional recruitment methods are increasingly being supplemented by hackathons and skill-based assessments to identify candidates with expertise in emerging technologies.

Infosys and Tech Mahindra changing workforce strategy

The brokerage highlighted that Infosys has started hiring engineers with advanced skill sets at compensation packages of up to Rs 2.1 million annually. The report added that the company's workforce composition is also changing, with a lower share of entry-level employees compared to previous years.

CLSA noted that junior employees now account for around 30 per cent of Infosys' overall workforce in FY26. At the same time, the proportion of employees below 30 years of age has been declining steadily over the past three years, falling to 51 per cent in FY26 from 60 per cent in FY23.

The report said this trend reflects the growing preference for experienced professionals with specialised AI and digital capabilities rather than relying primarily on large-scale entry-level hiring.

Meanwhile, Tech Mahindra has adopted a structured approach to workforce transformation by classifying employees into white, blue, brown and black belt categories based on their reskilling and AI readiness efforts.

Fresher hiring plans remain intact

Despite these changes, CLSA said fresher hiring targets for the next financial year remain largely unchanged. The brokerage noted that Indian IT companies continue to view campus hiring as an important part of their long-term talent strategy.

According to the report, Tata Consultancy Services (TCS) plans to hire around 40,000 freshers in FY27, while Infosys and Cognizant are each expected to recruit around 20,000 fresh graduates.

The outlook comes at a time when the global technology industry continues to witness significant workforce reductions.

Global tech layoffs remain elevated

Data compiled by Skillsyncer.com showed that 2026 has already recorded 212 layoff events affecting 134,603 employees globally. This translates to an average of around 868 job losses every day.

In comparison, 2025 saw 338 layoff events impacting 205,773 employees, with an average of 564 job cuts per day.

The largest single layoff this year was announced by Oracle, which reportedly reduced its workforce by around 30,000 employees on March 31, 2026.

Monthly data from the tracker showed that March witnessed the highest number of layoffs in 2026, with 49,802 jobs affected, followed by January with 28,683 and February with 22,338. April and May recorded 13,040 and 20,740 job losses, respectively.

Oracle, Amazon and Meta lead job cuts

Among individual companies, Oracle topped the list with 30,254 job cuts, followed by Amazon with 19,100 and Meta with 16,900. Nokia reportedly reduced 14,000 positions, while Block, Cisco, Aumovio, Intuit, WiseTech Global and Salesforce also announced sizeable workforce reductions during the year.

Sector-wise, software and technology companies accounted for the largest share of layoffs, with 43,845 jobs affected. IT services and IT consulting followed with 30,333 job losses, while the telecommunications sector recorded 16,643 layoffs.

Finance and fintech, e-commerce and retail, hardware and semiconductors, automotive technology and enterprise software also witnessed workforce reductions, according to the data.

India focuses on upskilling over job cuts

Geographically, the United States accounted for the largest number of layoffs, with 97,134 employees impacted. Finland's Espoo region recorded 14,000 job cuts, while Germany, Australia, India, Austria, the Netherlands and Sweden also reported notable reductions.

India accounted for around 3,170 layoffs during the period, significantly lower than several global markets.

CLSA's assessment suggests that while AI is changing the nature of jobs and increasing the demand for specialised talent, Indian IT companies are focusing more on workforce transformation and upskilling rather than cutting fresher hiring.

The brokerage believes the sector's hiring strategy is evolving from volume-based recruitment to skill-based recruitment, with AI capabilities becoming a key differentiator.