The traditional heavy pyramid is now being reshaped. The people-plus-AI paradigm is turning its foundations on its head, placing great importance on problem solvers, who can work effectively alongside AI.TCS, Infosys, Wipro, HCLTech and Tech Mahindra together cut 6,981 employees in FY26, compared to net additions of 12,718 in FY25. TCS led the walkout with 23,460 employee cuts, while Tech Mahindra cut 1,108 employees. Although employment has not fallen to fiscal year 2024 levels, when the sector saw sharp cuts of more than 69,000 jobs, the uneven recovery indicates limited growth visibility and a clear shift toward broad-based efficiency.
Hiring is increasingly focused on AInative talent, problem solvers and specialists in areas such as AI, data, cloud and cybersecurity.Infosys, Wipro and HCLTech continued to add staff, albeit cautiously, reflecting selective hiring and tighter oversight of utilization and margins. The broader trend indicates a structural reset in this sector. The numbers are less about breakdown and more about recalibration.
Analysts said the traditional IT model, where revenue growth was closely tied to headcount expansion, was beginning to collapse.
The total number of workers in the industry rose by 1.4 lakh to 59 lakh in 2026, marginally higher than last year’s addition of 1.3 lakh, Nasscom data showed. Even as overall growth stagnates, hiring is shifting toward specialized, industry-focused roles. The bulk of the growing demand is coming from global capacity centres, which continue to expand their mandate in India for the third year in a row.“There is an element of macro hysteresis, especially in discretionary spending, but AI is the biggest fundamental force, not because it replaces jobs overnight, but because it fundamentally changes the economics of delivery,” said Phil Fersht, CEO of US-based consultancy HFS Research. “Customers want results, speed and productivity gains, not just headcount.”Infosys CEO Salil Parekh’s comment on talent reflects this shift. The company is expanding hiring beyond just one skill profile, bringing in diverse, AI-aligned talent with different starting wages. It’s also building forward-deployed engineering teams — customer-facing engineers embedded with customers — to co-develop and deploy AI-driven solutions faster. Analysts said companies are increasingly prioritizing experienced talent who can work with leading technologies at scale.