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Covid-19 likely to impact 5% IT employees in India, take away 200,000 jobs

The Indian IT and BPM sector employs around 4.4 million people, directly and indirectly. Every year, around 2-3 per cent of the employee base get impacted owing to performance related issues

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In the quarter ended June, most of the Indian IT services firms had reported reduction headcounts as higher number of employees left during the quarter than those who joined.

Bibhu Ranjan Mishra Bengaluru

4 min read Last Updated : Aug 28 2020 | 1:27 AM IST

Performance-related retrenchment has always been part and parcel of the IT industry, but the current spate of layoffs in the IT and IT-enabled services (ITeS) sectors has more to do with the pandemic.

Industry insiders and analysts peg the number of IT and ITeS employees set to lose their jobs over the next few quarters — because of the Covid disruption — between 150,000 and 200,000.

“You will see a minimum of 3-5 per cent of the weight being shed in almost every IT company — particularly the big 20 — because of Covid and not performance-related issues,” said B S Murty,

Topics : Coronavirus IT Industry IT firms information technology IT job losses

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