Who Is Hiring In India? Doom-and-Gloom in Tech Sector, But AI Hiring Sees Better Days

The technology sector across the globe is crumbling beneath the transformative AI system, which is wiping out jobs at an unprecedented pace, but interestingly, companies now prefer roles that adapt to artificial intelligence, and hiring has been gaining momentum since early this year.

1,19,494 tech employees have been laid off in the first 6 months of 2026 from 219 tech companies, compared with 1,24,636 jobs from 276 companies in 2025, according to Layoffs.fyi data. Currently, this number is slightly lower than the post-pandemic firing spree in 2023, where 265,660 people were fired by 1,194 companies, but let's not forget that this data was for a whole year.

The main cause of the layoffs has been AI implementation and corporate restructuring, although how much the companies have gained through these cost-cutting remains debatable.

India accounted for 7.16% of global layoffs, emerging as the second-largest market for job cuts after the US, which was the bearer of the bad news and contributed 71.33% of worldwide layoffs amid the ongoing tech sector slowdown, according to Layoffs.fyi, which is not a government-based platform.

In terms of tech job losses this year, Bengaluru leads, followed by Hyderabad, Chennai, Pune and NCR. Traditional tech roles are under deeper pressure.

AI Hiring Accelerates as Companies Shift Towards Artificial Intelligence-Led Jobs

Interestingly, the hiring patterns have shifted, with demand for artificial intelligence (AI) roles growing even as overall tech recruitment remains under pressure. According to Naukri.com's monthly JobSpeak report, AI-related hiring increased 16% year-on-year in June, while total IT job openings declined 3% during the same period.

The report, which tracks job listings from over 150,000 companies on the platform, suggests that technology firms are increasingly prioritising AI capabilities as they adapt their businesses to rapid changes in the technology landscape.

India's AI talent base was estimated at around 6-6.5 lakh professionals in 2024, according to NASSCOM-linked estimates. Currently, that number is estimated to be 10-11 lakhs, and the pool is expected to grow at roughly 15% CAGR, reaching more than 12.5 lakh AI professionals by 2027, according to the Press Information Bureau.

Around 87% of Indian enterprises are actively using AI solutions, according to NASSCOM AI Adoption Index data cited by the government, which indicates that there is no running away from this. Will this be another bubble like the housing or dot.com, not sure.

The Bigger Challenge: Beyond Layoffs, India's IT Sector Faces the Pressure to Become AI-Ready

The FAAMNG group (Facebook/Meta, Amazon, Apple, Microsoft, Netflix, Google and affiliates) apparently added around 13,600 employees in India in 2026 so far, with hiring concentrated around AI, cloud computing, and engineering roles.

In the meantime, India's top IT services companies, including TCS, Infosys, Wipro, HCLTech and Tech Mahindra have been more cautious, with their combined workforce shrinking in FY26 as companies optimise operations and invest in AI-led productivity.

Most tech companies in India will report their earnings, starting with TCS, which will report on Jul 9, 2026.

Obviously, people who adapt and evolve with technology and AI are likely to keep their jobs and grow, but the old-school thought process will have to develop and expand.

India's tech hiring story in 2026 is no longer about mass recruitment. The winners are companies hiring for AI, cloud, and specialized digital skills, while traditional IT roles face restructuring.