India's IT Giants Cut Fresh Graduate Hiring by 70% Amid AI-Driven Shift

Breaking News: AI Triggers 70% Collapse in Fresh Graduate Hiring at India's IT Giants India's IT services industry has witnessed a catastrophic collapse in entry-level hiring, with the country's four largest exporters reducing fresh graduate recruitment by 70% between fiscal years 2023 and 2024. According to reports, Tata Consultancy Services and Infosys shed a combined 38,000 employees in fiscal 2024, marking the sector's first workforce contraction in decades. Timeline of Events Fiscal year 2023: India's IT giants employed 225,000 fresh graduates. Fiscal year 2024: The same companies reduced hiring to 60,000 new recruits, a 70% drop. Fiscal year 2025: Infosys projects a significant decline in employees under 30, from 81% in 2010 to 53%. Fiscal years 2026-28: India's IT sector projects just 50,000 net new jobs per year. Immediate Impact and Response The collapse in hiring has sent shockwaves through the industry, leaving many young graduates without job prospects. The graduate unemployment rate exceeds 13%, nearly triple the national average. Industry experts warn that this trend will exacerbate the existing skills gap and hinder innovation. Background Context Studies indicate that generative AI could automate up to 30-40% of junior developer and tester tasks, making human resources redundant. India's IT sector has long relied on fresh graduates to drive growth, but the rise of AI is forcing companies to reevaluate their hiring strategies. What Happens Next As the industry grapples with the implications of AI-driven automation, experts predict a significant shift towards upskilling and reskilling existing employees. The Indian government may also need to intervene to address the growing skills gap and provide support for young graduates entering the workforce. One thing is certain: the future of work in India's IT sector will be shaped by the rapid adoption of AI technology. *This story is developing. Information compiled from Slashdot reporting.*