‘Quiet Firing’: Are Indian IT Firms Taking The Silent Route Of Layoffs?

This strategy enables companies to save money by sidestepping severance payments for employees who voluntarily resign. Additionally, it deliberately fosters a negative work atmosphere

Some Indian companies, especially those in the IT services field, are letting employees go without making much noise about it, or they can say they are implementing ‘silent sacking’ or ‘quiet firing, ' according to an association. This means workers feel pressured to leave independently because of harsh work conditions.

This strategy enables companies to save money by sidestepping severance payments for employees who voluntarily resign. Additionally, it deliberately fosters a negative work atmosphere by promoting overwork, stalling promotions, and neglecting to provide adequate support.

Layoffs pose a substantial financial burden for companies, as they are required to offer severance packages to affected employees, states a report by the Harvard Business Review. Furthermore, a study conducted by the US think tank Pew Research Center revealed that the primary reasons for workers quitting their jobs in 2021 were low wages, limited opportunities for advancement, or feelings of disrespect.

‘Quiet Firing’ In India

This pattern is gaining traction in India as well. According to Moneycontrol's report, the All India IT & ITeS Employees' Union (AIITEU) stated that approximately 20,000 technology professionals were laid off quietly in the IT/ITeS sector in 2023. These layoffs impacted companies of all sizes within the IT services industry.

Companies make decisions to lay off employees based on their business circumstances. Teradata, a company based in San Diego that specialises in cloud analytics and data platforms, laid off approximately 35-40 employees at its Hyderabad campus towards the end of last year. This decision followed an earlier round of layoffs in 2022, where around 1,100 employees were let go worldwide. Teradata has a workforce of over 10,000 employees globally, as reported on LinkedIn, states the report.

In addition, last year, Boston-based financial services firm State Street assumed control of its joint venture partner Atos Syntel's operations in India. Moneycontrol reported that in March 2024, approximately 400-500 employees were laid off in India as part of operational streamlining. In 2024 alone, the Nascent Information Technology Employees Senate (NITES) stated that around 2,000-3,000 professionals lost their jobs among the top Indian IT services companies.

Citing multiple sources, Moneycontrol mentioned that Infosys allegedly laid off nearly 200-500 employees across its campuses in 2024, urging many to resign voluntarily. However, both Infosys and Atos Group denied these reports.