Mass layoffs at US tech companies have triggered a fresh wave of layoffs in India’s IT industry, with local software companies halting hiring of new recruits in the past few months as a cost-cutting exercise.
The recent layoffs at companies such as Facebook and Twitter may cast a shadow over information technology (IT) or software firms in India, especially those that cater to tasks outsourced from foreign companies.
Over the past few weeks, while Facebook’s parent company Meta announced layoffs of around 11,000 employees, Twitter’s new owner Elon Musk also laid off around 75 per cent of its workforce last month. However, a day earlier, Musk had announced a halt to the retrenchment exercise.
As a result of the slowdown in some of the world’s major economies and layoffs in companies such as Facebook and Twitter, some leading Indian IT companies have been putting a halt to new hiring as a cost-cutting exercise over the past few months. ,
Earlier this month, The Economic Times quoted sources as saying that the layoff announcement “may not be very significant” for Meta India’s over 400 employees in the country.