Nearly 25,000 tech workers have lost their jobs globally in just the first month of 2026. That’s an alarming number — roughly 800 people a day getting pink slips from companies that were hiring aggressively just two years ago.
This wave of job cuts is hitting major tech companies and startups alike. Companies that seemed untouchable — valued at billions and growing fast — are now slashing their workforce. Why? Many hired too many people during the pandemic boom, and now they’re struggling to make profits.
Why Is This Happening Now?
The tech industry grew at breakneck speed from 2020 to 2023. Remote work meant companies could hire talent from anywhere. Venture capital money was flowing freely. Everyone wanted a piece of the tech pie.
But reality hit hard. Artificial intelligence, while promising, hasn’t yet generated the massive profits investors expected. Competition intensified. And spending on advertising — a major revenue source for many tech companies — started drying up.
So now, instead of waiting for things to improve, tech leaders are cutting costs fast. That means eliminating roles they see as non-essential.
What Does This Mean for Indians?
If you work in tech, especially in cities like Bangalore or Hyderabad, you should sit up and pay attention. Many of these layoffs are happening at Indian tech offices too.
India has become a global tech hub. Companies like Meta, Google, Amazon, and countless startups employ hundreds of thousands of Indians. When global tech companies struggle, Indian workers feel the impact directly.
The good news? India’s tech talent remains in high demand globally. But the competition for jobs is becoming tougher. Companies are now pickier about whom they hire and how much they pay.
If you’re looking to switch jobs or start your career in tech, expect a slower hiring process and possibly lower salary offers than last year. Startups that were throwing money around to attract talent are now much more careful about spending.
This also affects Indians who have shares in tech companies through mutual funds or direct investments. Stock prices fall when companies announce layoffs, which can impact your portfolio’s value in the short term.
On the broader side, this slowdown might force tech companies to focus on actual profits instead of just growth. That could mean better products and services long-term — but painful adjustments in the short run.
The real question is whether this is just a correction or the start of something worse. If more layoffs come in the coming months, we might see a bigger impact on India’s IT sector and the thousands of families dependent on it.