New Delhi, Apr 5 The IT employees' body, NITES, has urged tech firms to prioritize reskilling over layoffs, while calling for policy intervention to strengthen safeguards and ensure mandatory severance terms for white-collar workers, given that aggressive AI development by the industry is causing job cuts and uncertainty for the workforce.
NITES argues that while tech profits remain strong, weakening job security raises serious questions about corporate responsibility and accountability.
"Companies must take responsibility," said NITES president, Harpreet Singh Saluja, "If they are investing in AI, they should also invest in reskilling their existing workforce."
He emphasized that job cuts should be the last resort, not the first, urging policymakers to intervene immediately to protect workers through clear workplace guidelines on layoffs, mandatory notice periods, fair severance, and employer accountability.
"India still lacks strong legal protection for white-collar employees in the private sector," he said, "We need clear guidelines on layoffs, mandatory notice periods, fair severance, and accountability in cases of mass layoffs."
He called on workers to be more aware of their rights and to continuously upgrade their skills.
NITES will push for policy-level changes to protect the workforce from "unfair layoffs" or forced mass resignations.
"We have been raising issues of unfair layoffs, forced resignations, and lack of due process before government authorities," Saluja said. "Moving forward, we will push for policy-level changes, stronger enforcement, and a structured framework to protect employees during such transitions."
The technology sector has seen significant downsizing in recent months, with prominent tech giants like Oracle, Google, and Meta reducing their workforce.
What began as a correction for overhiring during the pandemic is being exacerbated by a strategic shift towards AI.
Eyewitness accounts of impersonal and cold approaches to retrenchments, including the "6 am email" culture – the dreaded automated termination notice sent in the pre-dawn hours that deactivates employee badges before they can even log in – have caused widespread anxiety among the tech workforce globally, including in India.
Data from Layoffs.fyi shows that more than 70 tech companies have shed a staggering 40,480 jobs globally this year.
Critics and analysts say that AI is emerging as a convenient justification, and that the reality may be more complex.
While significant investments are being made in AI infrastructure, experts say that layoffs are also being driven by cost-cutting, pressure from investors, and a correction after over-hiring during the pandemic years.
Oracle Corporation recently cut thousands of jobs globally, the largest single-day layoff in the tech sector in recent years, even as the enterprise software firm, led by Chairman Larry Ellison, is making significant investments in data center infrastructure to power AI workloads for customers like OpenAI.
The cloud computing firm headquartered in Austin, Texas, is believed to have laid off nearly 12,000 staff in India, with another round of layoffs expected within a month, according to impacted employees.
Globally, the company has fired around 30,000 staff. According to its annual filing with the US Securities and Exchange Commission, the company had about 162,000 employees as of May 2025.
"What we are seeing is a mix of traditional cost rationalization and future positioning, where companies are restructuring teams in anticipation of AI, rather than actual displacement caused purely by AI," Saluja said.
He described this shift as structural, not merely a temporary correction, as companies are moving towards leaner teams, higher productivity expectations, and more contract-based or flexible hiring models.
"The idea of long-term job security in the tech sector is getting weaker," he said, "However, this does not mean jobs will disappear. New roles will emerge, but the transition is not being managed responsibly. Employees are being pushed out without proper reskilling or support."
Many companies are resorting to job cuts despite being financially strong, as they prioritize shareholder returns over workforce stability, he alleges.
"There is also a trend of showing efficiency to the market, where reducing headcount is seen as a positive signal," he said. "At the same time, companies are reallocating resources towards AI and other high-growth areas. So, while profits remain strong, job security is becoming weaker. This raises serious questions about corporate responsibility."
Earlier this year, fintech giant Block, led by co-founder Jack Dorsey, announced layoffs of more than 4,000 employees, or nearly 40 per cent of its headcount.
Dorsey, in a recently published essay co-authored with Sequoia partner Roelof Botha, suggested that in the coming years, the role of the middle manager could become obsolete.
Companies like Pinterest, CrowdStrike, and Chegg have also announced job cuts, blaming AI adoption for broader organisational resets.
NITES' Saluja noted that job cuts are not just a professional matter, but a personal crisis where workers undergo severe mental health and financial crises.
"The impact is very serious," he said, "We have seen anxiety, depression, loss of confidence, and even breakdown of families due to sudden job loss. Many employees are servicing loans, supporting families, and living in expensive cities."
He added that there is very little focus on mental health, career transition, or dignity in the process.
