New Delhi, Apr 5 (PTI) IT employees' body NITES has exhorted tech firms to prioritise reskilling over layoffs, while calling for policy intervention to bring stronger safeguards and mandatory severance norms to protect white-collar workers, as aggressive AI build-outs by industry trigger job cuts and uncertainty for workforce.
Nascent Information Technology Employees Senate (NITES) has argued that although tech profits remain strong, weakening job security raises serious questions about corporate responsibility and accountability.
"First, companies must take responsibility. If they are investing in AI, they should also invest in reskilling their existing workforce," NITES president Harpreet Singh Saluja told PTI.
Job cuts should be the last option, not the first, he said, urging policymakers to intervene immediately, to shield workers by enforcing 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. We need clear guidelines on layoffs, mandatory notice periods, fair severance, and accountability in cases of mass layoffs," he said calling on workers to also be more aware of their rights, and to continuously upgrade their skills.
NITES, he said, 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. Going forward, we will push for policy-level changes, stronger enforcement, and a structured framework to protect employees during such transitions," Saluja said.
The technology sector has seen instances of brutal downsizing over the past months, with some prominent tech giants including Oracle, Google and Meta slashing roles.
What experts say began largely as a correction for pandemic-era overhiring has been exacerbated by a strategic shift towards AI.
First-hand, emotional accounts of a cold, impersonal approach to retrenchments with '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 sent shockwaves across the industry, fuelling anxiety among the tech workforce globally, and in India.
Data from tracking site Layoffs.fyi shows that more than 70 tech companies have shed a staggering 40,480 jobs globally, just this year.
Many critics and analysts say that AI is emerging as a convenient justification, and that reality may be more complex.
While hefty capital commitments are being pledged towards AI infrastructure build outs, experts say layoffs are also being driven by cost cutting, pressure from investors, and correction after over hiring during the pandemic years.
Oracle Corporation last week 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 billionaire Chairman Larry Ellison, places historic bets on aggressive data center blueprint to power AI workloads for customers such as OpenAI.
The Austin, Texas headquartered cloud computing firm is believed to have laid off nearly 12,000 staff in India, with another round of layoffs feared 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 overall as of May 2025.
"What we are seeing is a mix of traditional cost rationalisation and future positioning, where companies are restructuring teams in anticipation of AI, rather than actual displacement caused purely by AI," Saluja said.
Describing it as a structural shift, not merely a temporary correction, he said 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. 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," he said.
Many of these companies are resorting to job cuts despite being financially strong, as they rush to prioritise shareholder returns over workforce stability, he alleged.
"There is also a trend of showing efficiency to the market, where reducing headcount is seen as a positive signal. 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," he said.
Earlier this year, fintech giant Block, which is led by storied entrepreneur and Twitter co-founder Jack Dorsey, announced layoffs of more than 4,000 employees, or nearly 40 per cent of its headcount.
In a recently published essay coauthored with Sequoia partner Roelof Botha, Dorsey suggested that in the coming years, the role of the middle manager could be rendered obsolete.
Companies like Pinterest, CrowdStrike, and Chegg too have announced job cuts blaming AI adoption for broader organisational reset.
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. 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 said, slamming companies for not doing enough to support distraught employees.
There is very little focus on mental health, career transition, or dignity in the process, Saluja added.