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Bengaluru’s Tech Layoff Crisis: AI Hits IT Jobs Hard

Bengaluru, known as the Silicon Valley of India, is facing one of its worst job crises as artificial intelligence (AI) continues to reshape the IT industry. The wave of mass layoffs, which began in 2022, shows no signs of slowing down, leaving thousands of tech professionals in uncertain waters.

Mass Layoffs Driven by AI

Recent reports indicate that Bengaluru’s IT sector is undergoing large-scale job cuts, primarily affecting entry-level programmers and software testers. In 2024 alone, more than 150,000 jobs were lost across 549 companies. The trend has continued into 2025, with over 22,000 job losses recorded so far, including 1,684 layoffs in February alone.

AI-driven automation is at the heart of this disruption. Low-end technical jobs, such as Level 1 and Level 2 tech support, are increasingly being replaced by AI-based software and bots. Companies are leveraging AI to improve efficiency and reduce operational costs, leading to the displacement of human workers.

Economic Impact Beyond IT

The crisis is not limited to tech workers. Bengaluru's economy, heavily reliant on the IT sector, is also feeling the heat. Local businesses, real estate markets, and consumer spending have been negatively affected as laid-off tech workers face financial instability.

Expert Insights on the Future of IT Jobs

Speaking on the issue, Ganish Gor, a technology and policy expert and founder of the India Future Foundation, highlighted the growing importance of upskilling. He stressed that tech professionals must adapt to AI-driven changes by learning new skills such as AI development, open-source AI, and large language models (LLMs).

"Workers with 0 to 5 years of experience are the most vulnerable. However, those with specialized knowledge and domain expertise are more likely to retain their positions," Gor noted.

Similarly, Somraj Bachar G, a marketing strategy and AI expert, compared the current AI-driven transformation to the Industrial Revolution. He emphasized that while automation will replace certain jobs, it will also create new opportunities.

"Entry-level jobs in industries like retail, insurance, and education may decline, but there will be increased demand for managerial and specialist roles in automation, finance, and FMCG," Bachar G explained.

Upskilling: The Key to Survival

The experts agreed that professionals need to shift their focus toward AI management and implementation. Understanding AI’s capabilities and limitations will become essential for career growth in the evolving job market.

"AI will not just take away jobs; it will create high-paying opportunities for those who can control and monitor AI systems," Bachar G added.

The Road Ahead

Despite the bleak outlook, there is hope for those willing to adapt. Bengaluru’s tech workforce has weathered industry disruptions before, and with the right skills, they can navigate this AI-driven shift. While mass layoffs are expected to continue in the short term, the rise of AI could eventually lead to a more specialized and resilient job market.

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