Human cost of rapid tech advances

Layoffs in the technology sector are back on the centrestage following a series of recent retrenchments. The most staggering of these was at Oracle, which reportedly laid off 30,000 employees globally in a single day. While official figures for India aren’t available, it is estimated that at least 2,500 professionals were affected. A similar exercise was undertaken by companies like Amazon, Dell, Meta and Ebay as well. The reasons cited by the firms vary. Block CEO Jack Dorsey explicitly pitched for “intelligent tools” to replace “middle management”, while Salesforce’s Marc Benioff argued that layoffs often stem from runaway expenditure, data centre commitments, and a correction of post-pandemic over-hiring.

Regardless of the corporate logic, the human cost remains high. The severance process, often reduced to an impersonal, system-driven email, triggers immense emotional stress. For senior professionals in their mid-40s or 50s, the sudden cessation of the paycheque can be devastating for their families. It’s often suggested that when technology changes, workers have to evolve with newer and matching skills. However, this overlooks the moot point of whether continuous reskilling every few years or even months is practical or viable considering the shortage of learning and financial resources. In India, these recurring tech layoffs only exacerbate the precarious unemployment situation that already exists.

There has been a recruitment freeze across both public and private sectors for a long time. It’s not that vacancies don’t exist; hiring is limited probably because of the advent of AI or financial constraints. The government frequently cites figures to suggest robust job creation. For instance, it says there has been a net addition of 16.83 crore jobs between 2018 and 2024. But, this is not in proportion to the rising number of employable people. India produces approximately 50 lakh graduates annually, yet only 28 lakh find employment. An Azim Premji University study indicates that 1.1 crore graduates are jobless, accounting for 67% of all unemployed youth in the 20 to 29 age group.

This crisis demands urgent recognition and action by governments as well as the industry. Government policies across the board have to be less restrictive because unwarranted regulations stifle the innovation that drives growth. Industry-academic tie-ups must be strengthened to ensure graduates are “employment-ready”. Furthermore, there has to be a lot more institutional support for MSMEs and a greater focus on vocational training. Crucially, the unemployment crisis must be viewed as an apolitical, national priority affecting our youth and the nation’s core strength. As technology advances at breakneck speed, our socio-economic and policy frameworks must keep pace through political consensus. The challenge is not just about technological innovation; it’s also about ensuring a rightful place for human talent.