Nascent Information Technology Employees Senate (Nites) has demanded mandatory reskilling commitments, severance norms and policy safeguards as AI-driven layoffs accelerate across India’s IT sector, with over 40,000 global tech jobs cut this year alone per Layoffs.fyi. Nites President Harpreet Singh Saluja criticised companies for prioritising shareholder returns over workforce stability despite strong profits, calling job cuts “last resort, not first option.”
Saluja urged firms investing in AI to match that with internal upskilling, while pressing government for white-collar protections including notice periods, fair payouts and enforcement against forced resignations. “India lacks strong legal protection for private sector employees—we need clear guidelines on layoffs and accountability,” he told PTI, vowing Nites advocacy for structured transitions.
AI as Layoff Justification Amid Cost Rationalisation
Recent cuts at Oracle (30,000 global, ~12,000 India), Google, Meta and Block (40% headcount) blend pandemic corrections, investor pressure and AI restructuring. Oracle’s mass layoffs coincide with $2.1B AI infra push led by Larry Ellison, while Block’s Jack Dorsey predicts middle management obsolescence.
Saluja characterised this as “structural shift” toward leaner teams, productivity mandates and contract models eroding job security. “New roles will emerge, but transitions lack responsibility—employees face mental health crises without support,” he said, citing “6 am email” firings deactivating access pre-dawn.
Nites highlighted personal toll: loan burdens, family strain and confidence loss in high-cost cities. “Companies show efficiency to markets by cutting headcount while reallocating to AI,” Saluja alleged, demanding mental health focus and dignified processes.
From Overhire Correction to AI-First Workforce
Layoffs.fyi tracks 70+ firms shedding 40,480 roles YTD, with Pinterest, CrowdStrike and Chegg blaming AI resets. Critics argue AI justifies broader cost discipline rather than direct displacement, as firms pivot resources amid $356B AI infra market.
Nites positions as workforce advocate pushing enforcement and awareness. Saluja emphasised continuous skills upgrade but stressed employer duty: “Profits remain strong—job security weakening raises corporate responsibility questions.”
India’s IT sector confronts AI’s dual edge: efficiency gains versus displacement risks, demanding balanced policy and corporate accountability to navigate the transition humanely.
(Credit: PTI)
