Synopsis
Indian IT firms are increasing job cuts in the US, with layoffs expected to accelerate due to AI's growing influence and slowing deal-making. Companies are restructuring, impacting onsite employees, especially those tied to large transformation deals. Regulatory filings reveal a significant rise in layoffs in early 2026 compared to the previous year.Onsite employees are increasingly at the front of the line in a restructuring as deal-making slows and clients push for lower costs amid rising AI adoption, they noted.
An analysis of regulatory filings shows that Indian IT and business process outsourcing firms may have laid off more people in the US in the first three months of 2026 than in all of 2025.
Under US law, companies with more than 100 employees must provide 60 days’ notice before large layoffs of over 50 employees or closing a plant location under the Worker Adjustment and Retraining Notification (WARN) Act. These filings, posted on states’ websites, offer a window into job cuts.
Hinduja Global Services, Infosys and HCL Technologies have filed WARN notices in Florida, Texas and Pennsylvania between January and March. In 2025, Genpact was the only Indian heritage services company to file such a notice—in Wisconsin, covering 51-100 employees in January 2025.
In 2024, Indian IT firms filed four WARN notices—two by Genpact, one by HCL Americas and one by Tata Consultancy Services.
Hinduja Global, HCL Tech and Infosys did not respond to an email seeking comment on the cuts.
Most layoffs are of people who joined these firms as part of $1-billion-plus transformation deals, experts said.
“What happens in the large deals…is that there is always rebadging of employees (from the client to the service provider),” Pareekh Jain, CEO of Pareekh Consulting and EIIR Trend, told ET. “This is a risk that companies take… How will you redeploy these employees in other projects? In the past, it was possible to redeploy, but now with the macro-environment and AI, there is not so much demand. So, you are seeing these notices,” he explained.
In some cases, WARN notices do not signify a straight layoff. In February, Infosys’ BPM arm filed a WARN notice for 248 employees, most of whom were moving back to its client Vanguard as part of a reworking of a multi-billion dollar deal signed in 2020.
“They took back some US onsite workers and outsourced some more work in India and the Philippines to Infosys to meet the contract clauses but because there is no ‘rebadging’ filing, the only appropriate filing was a WARN notice,” a person aware of the matter told ET.
EIIR Trend’s Jain said such filings will come on a case-by-case basis as projects ramp down and that there wouldn’t be big layoffs over here, as seen in the case of Oracle.
Earlier this month, technology giant Oracle fired about 30,000 employees—including 10.000 based in India. Oracle’s termination email to employees, sent at 6.00 am IST, was accompanied by a slew of WARN notices filed across US states.
