Layoffs hit Indian GCCs even as new centres expand hiring
Global Capability Centres (GCCs) in India cut more than 5,500–6,000 jobs in 2025 as multinational parent companies recalibrated global operations in response to macroeconomic pressures, trade frictions and rapid adoption of artificial intelligence, according to data from GCC intelligence firms.
The reductions spanned sectors including engineering, automotive, aerospace, retail and technology. The cuts came even as India recorded a surge in new GCC setups and strong net job additions, underscoring a divergence between legacy roles being trimmed and new capabilities being built.
Data from UnearthIQ and engineering services research platform EIIRTrend show that India added about 101 new GCCs in 2025, with net new jobs estimated at 135,000–150,000 for the year. That places the layoffs in the context of a still-expanding ecosystem, though one undergoing structural shifts.
Industry analysts describe the moment less as a contraction and more as a “reset” in how multinational firms deploy talent in India.
Why it matters: GCCs are a pillar of India’s knowledge economy
GCCs—offshore units set up by global corporations to handle technology, engineering, finance, analytics and operations—have become a core component of India’s services economy. They employ hundreds of thousands of professionals and are central to India’s positioning in global value chains.
Changes in GCC hiring patterns therefore carry implications beyond individual companies. They influence urban job markets, wage trends, commercial real estate demand and India’s reputation as a global talent hub.
For policymakers and investors, the question is whether layoffs signal weakening demand or a shift toward higher productivity and new skill requirements. The available data suggest the latter, though the transition may be uneven.
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What we know so far: Scale and distribution of layoffs
According to UnearthIQ and EIIRTrend data:
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Over 5,500–6,000 GCC employees in India were laid off in 2025
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Layoffs were spread across about 20 GCCs, often in smaller team reductions
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Technicolor’s shutdown alone accounted for roughly 3,000 job losses
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Ford’s AUMOVIO unit planned layoffs affecting about 1,000 roles
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Fidelity Investments cut about 500 jobs
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Restructuring-based layoffs were also reported across GCCs linked to Wells Fargo, Target, Boeing, Renault Nissan, Avaya and Oracle
Gaurav Vasu, Founder and CEO of UnearthInsight and UnearthIQ, said Technicolor represented the single largest event. “Remaining layoffs happened in small teams across 20 GCCs amounting to another 3,000 at least. Most big tech majors had cut jobs in teams aligning to global strategies,” he said.
Pareekh Jain, CEO and lead analyst at EIIRTrend, added that 6,000 may still be a conservative figure and that actual numbers could be higher as not all reductions are publicly disclosed.
What remains unclear: True scale and pace of future restructuring
Because many GCC workforce changes are internal and not always disclosed, the full scale of layoffs may not yet be clear. Some firms roll out reductions in phases or redeploy staff across functions, making net figures harder to capture in real time.
It is also not yet clear how long the restructuring cycle will continue. If global macro pressures ease or tech spending rebounds, the pace of cuts could slow. Conversely, deeper AI integration could accelerate redesign of roles.
Another unknown is the geographic distribution within India. Detailed city-level data on which hubs are most affected are not fully available.
Market or sector impact: Tech and engineering roles most exposed
The layoffs appear concentrated in technology product groups, experimental divisions and roles built on older staffing models. Areas such as visual effects, legacy engineering services and certain back-office operations have seen sharper cuts.
At the same time, demand remains strong in:
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Cloud computing
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AI and data science
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Enterprise AI solutions
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Cybersecurity
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Advanced analytics
Vasu noted that many technology product firms globally shut experimental divisions, laying off 4,000–5,000 people in those groups, even as they expanded in cloud and AI.
This suggests a rotation rather than a collapse in demand. For listed Indian IT and engineering firms, the trend could mean shifting client requirements rather than outright spending cuts.
Broader context: AI-driven productivity push reshapes global teams
The restructuring aligns with a broader global trend. Large technology firms have been under pressure to improve margins after heavy investments in AI infrastructure. That has led to closer scrutiny of workforce productivity.
Hani Mukhey, Senior Director and People Success Partner for GCCs at consulting firm Zinnov, said teams built on older staffing assumptions are being evaluated against sharper output benchmarks.
“AI is accelerating this reset. Across finance, HR, operations, compliance, analytics and engineering, workflows are being redesigned. This does not automatically mean job cuts. It does mean a different skill mix,” she said.
In other words, the shift is from headcount-driven growth to capability-driven growth.
What analysts and officials are saying: Integration with global cycles
Jain of EIIRTrend emphasised that Indian GCCs are now deeply integrated with global business cycles. “Indian teams are no longer seen as cost-control exercises. Every team here is aligned with global product teams. So whenever there is a layoff in the US headquarters, it impacts their Indian teams too,” he said.
He and others argue that the layoffs largely reflect macro headwinds at parent organisations rather than a loss of confidence in India.
Meta’s global example illustrates the dynamic. After investing heavily in AI, it trimmed about 600 employees globally from its AI Superintelligence Labs. Such moves, analysts say, are part of portfolio recalibration.
What it means for investors or stakeholders: Shift in skill demand, not exit from India
For investors and policymakers, the data suggest that multinational corporations are not retreating from India. The addition of 101 new GCCs and up to 150,000 net new jobs indicates continued long-term commitment.
However, the nature of jobs is evolving. Roles tied to routine processes or experimental projects may face higher risk, while AI, cloud and product-focused roles are expanding.
For real estate developers and city administrations in GCC hubs, the net expansion still supports demand, though tenant requirements may tilt toward higher-end, tech-enabled campuses.
For professionals, the message is clear: skill relevance is becoming more critical than tenure.
What to watch next: Hiring mix, AI adoption and global tech cycles
Key watchpoints for the next 12–24 months include:
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Pace of AI adoption within GCCs
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Hiring trends in AI and cloud roles
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Global tech spending cycles
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Macroeconomic conditions in the US and Europe
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Net GCC additions in India
If new GCC setups continue at current pace, India could still see robust net job creation even amid periodic restructuring.
For now, the evidence points to a sector in transition rather than decline—where job churn is rising, but the long-term trajectory of India as a GCC hub remains intact.
