2025 has been nothing short of a challenging year for many. For much of the past decade, India’s white-collar economy expanded on the promise that talent would always be absorbed by big MNCs, startups chasing growth, and digital businesses that bet on endless demand. But 2025 turned out to be different.
From IT services, media conglomerates to electric mobility and online gaming, employers across sectors began cutting staff at a scale not seen since the pandemic, as artificial intelligence rewired workflows, regulators rewrote the rules, and investors demanded profits, not projections.
By the close of the year, as many as 12,000 confirmed job losses had been recorded across large companies and venture-backed firms.
IT services confront the AI moment
The most significant workforce reduction of the year came from Tata Consultancy Services. In July, India’s largest IT services exporter announced about 2% job cut, and this included its global workforce. As per an Indian Express report, the impact of the same on India turned out to be 2,000- 2,500 jobs. The company attributed the decision to artificial intelligence-led productivity gains, changing client demand and macroeconomic uncertainty.
AI-led restructuring was not limited to legacy players. Conversational AI firm Gupshup reported a net reduction of around 300 employees over an 18-month period as it consolidated teams following multiple acquisitions and sharpened its focus on profitability, as per Inc42. VerSe Innovation, which runs Dailyhunt and Josh, laid off roughly 350 employees as it automated processes and cut costs in pursuit of sustainable operations, as per Inc42.
FinancialExpress.com could not, however, independently verify these numbers. This is based on details published by layoffs. fyi.
Media consolidation takes a toll
Job losses also followed consolidation in the media and entertainment sector. The merger that led to the formation of JioStar led to more than 1,100 employees being laid off between March and June, as per a Mint report. The layoff was across the sections of distribution, finance, legal and commercial teams. However, FinancialExpress.com could not verify the details independently.
Electric mobility’s hiring boom stalls
India’s electric vehicle ambitions faced a reality check in 2025. Ola Electric cut more than 1,000 jobs in March as it sought to curb losses, automate frontline operations and adjust to slowing sales, as per Reuters.
Gaming hit hardest by regulation
The sharpest layoffs of the year came after the Promotion and Regulation of Online Gaming Act, 2025, came into force. The August ban on real-money gaming shut down business models almost overnight, leading to widespread job losses across the sector.
Companies heavily dependent on India’s revenues were forced to shut paid gaming operations or pivot to free-to-play formats. However, most of these companies have pivoted to different models, such as microdrama, astrology, a second-screen sports platform, etc.
Head Digital Works, the parent company of A23 Rummy and A23 Poker, laid off around 500 employees, as per Entracker. Games24x7 cut about 400 jobs across two rounds during the year, as reported by Storyboard and PeopleMatters. PokerBaazi also reduced its workforce by roughly 200, retaining a smaller core team to maintain essential operations, as per Storyboard. Gameskraft cut more than 400 jobs as per Inc42, while Zupee laid off around 170 employees as it shifted its business model, as per YourStory. Junglee Games, owned by Flutter Entertainment, shed 350 jobs, with its parent taking a substantial impairment charge linked to its India operations, as per Inc42.
The gaming sector’s experience stood out not just for the scale of layoffs but for how quickly regulatory risk translated into job losses.
E-commerce and quick commerce pull back
Cost pressures were also evident in logistics and quick commerce. Ecom Express laid off around 500 employees amid financial strain, the loss of a major client and uncertainty ahead of its acquisition by Delhivery, as per Mint.
Quick-commerce firm Zepto laid off 300 employees, as per Moneycontrol, while Zomato took out 600 jobs, as per TOI. The reductions followed the closure of several Zepto Cafe outlets and a broader push towards automation and demand optimisation.
A year shaped by discipline and risk
Three forces defined India’s layoff cycle in 2025. Automation, particularly AI, moved decisively from experimentation to workforce rationalisation. Profitability replaced growth as the primary metric for startups and mature firms alike. And regulatory risk emerged as a major fault line, most visibly in online gaming.
Layoffs seemed to be predominantly concentrated in startup hubs, with Bengaluru reportedly accounting for more than half of startup job losses, followed by Mumbai, Delhi-NCR and Hyderabad.