India’s global capability centre (GCC) ecosystem has seen thousands of job cuts this year, according to Moneycontrol. Estimates vary widely, ranging from 4,000-5,000 on the low end to as high as 25,000-30,000, as companies restructure their operations and push for AI-led productivity gains.
Two Estimates, One Trend
EIIRTrend CEO Pareekh Jain put the cuts at around 25,000-30,000. 3AI’s Sameer Dhanrajani offered a much lower figure, at 4,000-5,000. The reported reductions include around 600 roles at PayPal and 1,500 at Visa, along with additional cuts at ServiceNow and other GCCs.
These layoffs are happening as Indian GCCs take on larger technology, engineering, AI, and product mandates. The shift points away from broad headcount expansion and toward smaller teams with deeper technical skills. India’s GCC ecosystem currently employs around 2.4-2.5 million people across more than 2,100 centres.
Why AI Doesn’t Mean 55% of Jobs Disappear
The workforce changes tie directly to how AI is reshaping the work itself inside GCCs. Data cited by Moneycontrol shows 17.7% of GCC work is commodity-based, while 38.1% is complex. Around 55% of the overall work portfolio has some exposure to potential AI displacement.
That figure needs context. It doesn’t mean 55% of jobs will disappear. It means tasks within those roles could be redesigned or automated as companies change how work gets done, a distinction between a role changing shape and a role vanishing entirely.
Not a Simple Story of Decline
Neeti Sharma, CEO of TeamLease Digital, told AIM that the picture is more nuanced than headline numbers suggest. While some impact comes from global headquarters restructuring, it’s not direct, she said. “Indian GCCs continue to gain higher-value work and are moving from volume hiring to skill-based, smaller, sharper teams focused on innovation.”
That distinction matters more as Indian GCCs take on increasingly strategic functions. Centres are handling more AI, engineering, and product responsibilities, including areas of enterprise decision-making that were previously concentrated at global headquarters.
Headcount and Importance, Moving in Different Directions
The result is that headcount and strategic importance aren’t necessarily tracking together anymore. A GCC can reduce staffing in some functions while simultaneously taking on more responsibility for products, engineering platforms, and AI systems. Companies are also continuing specialised hiring and setting up new centres, even as they grow more selective about overall headcount.
