Oracle and Microsoft Restructure Workforce as India’s Tech Sector Faces Job Cuts
Layoffs continue to dominate the global tech sector, and India is no exception. Microsoft has placed around 500 employees on performance improvement plans (PIPs), while Oracle is set to cut approximately 3,000 jobs in the country. These moves come as tech companies reassess their workforce and shift spending towards emerging areas.
Oracle Job Cuts, Microsoft PIPs in Focus
Pareekh Jain, CEO of EIIRTrend, indicated that Microsoft’s PIP initiative could impact about 2% of its workforce in India, translating to around 400-500 employees. Oracle’s layoffs, expected to begin on September 1, could affect between 2,000 and 3,000 employees, following a previous reduction of 12,000 jobs in the country. Oracle currently employs around 30,000 people in India.
A Microsoft spokesperson clarified that the company employs a formal PIP process, which may involve coaching, voluntary separation options, or termination for employees not meeting performance expectations. The spokesperson noted that the percentage of employees on PIPs globally is small and did not provide specific regional data.
Indian IT Sector Churn
India’s IT hiring landscape is shifting, particularly for fresh graduates, as major tech firms become more selective in campus recruitment. Companies like IBM, Accenture, and Cognizant have informed candidates that their joining dates will depend on project availability and business needs, leading to delays for many engineering graduates.
This cautious approach to hiring reflects a broader reset in the IT industry. The five largest IT companies in India reported a net reduction of 6,981 employees in FY26, following a net addition of 12,718 employees in FY25. Despite this, there are signs of recovery, with the six largest IT firms adding a net 5,400 employees in the first quarter of FY27, largely driven by TCS, which added 9,000 employees, marking its largest quarterly increase in three years.
Global Capability Centres (GCCs) are emerging as significant employers in the tech sector, focusing on specialized skills such as AI, data analytics, and cybersecurity, rather than traditional large-scale recruitment of fresh graduates.
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