In late 2023, 31-year-old Aakash received an unexpected email from his manager inviting him to a virtual meeting.
During this brief 15-20 minute meeting, which included an HR executive, Aakash was laid off from Teradata, a company specializing in cloud analytics and data platforms.
He was given two choices: resign voluntarily and receive four months’ advance salary or be terminated without additional compensation.
Pressed to make an immediate decision, Aakash chose to resign. Since then, despite attending 20 to 25 job interviews, he has not secured new employment, and his savings are depleting.
Similarly, Sriram, along with several colleagues, was placed on the bench for 25 days at Cognizant, a leading global IT company.
Eventually, they were asked to resign and were given three months’ salary in advance. This practice, known as a “quiet layoff,” has affected employees at all levels within Cognizant.
The Rise of Silent Layoffs
According to the All India IT and ITES Employees Union (AIITAEU), silent layoffs resulted in 20,000 IT sector job losses in 2023.
The union suggests the actual figure is likely higher and underreported.
These layoffs occur across companies of all sizes, often involving notifying employees 30 days in advance to find new employment or face termination.
Silent layoffs are a discreet method companies use to reduce their workforce, compelling employees to resign voluntarily.
The Nascent Information Technology Employees Senate (NITES) reports that in large-cap IT companies alone, 2,000-3,000 professionals were laid off this way in 2024.
This trend highlights the ongoing challenges within the IT industry, affecting thousands of workers like Aakash and Sriram.
Impact on the Industry
Quiet layoffs in the IT sector are a response to the industry’s slowdown between 2023 and 2024.
As companies seek to reduce costs, employees like Aakash and Sriram are left searching for new opportunities amidst a challenging job market.
This trend underscores the precarious nature of employment in the IT sector during economic downturns.
