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India's IT Sector May Cut 35,000 Tech Jobs in 2026 Amid AI-Driven Restructuring

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India's IT services industry, valued at over $315 billion, is projected to eliminate around 35,000 technology jobs in 2026. The cuts reflect an ongoing restructuring phase driven largely by the rapid adoption of artificial intelligence across the sector. Companies are trimming workforces that were significantly expanded during the pandemic-era hiring boom. This rationalization follows three consecutive years of subdued business conditions that have pressured IT firms to reduce costs. The trend signals a broader structural shift in how India's tech industry deploys and manages its workforce.

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