India Inc's Fresher Hiring Sees Steep Drop amid AI Adoption

Artificial intelligence was supposed to make businesses leaner, faster and cheaper to run. Across India's largest companies, that promise now seems to be hurting freshers and entry-level professionals. India's largest IT companies and most storied conglomerates are recording some of their lowest fresher-hiring numbers in years.

The reasons include AI adoption, global economic uncertainty, supply chain disruptions and a cautious job market. Especially in tech sector, demand for entry-level professionals with up to 2 years of experience dropped to 10,000 openings compared to 13,000 in May 2026, reflecting a sharp 44% YoY decline, according to specialist staffing firm Xpheno.

Reliance Industries, one of India's largest employers, may have reduced new hirings by as many as 90,000 in FY26 compared to the previous year. In FY25, Reliance had onboarded over 1.9 lakh new hires. Its FY26 annual report states only "1 lakh+" new hires, reportedly suggesting a reduction of close to 90,000.

The conglomerate's overall headcount, however, continued to grow — from 3.47 lakh in FY24 to 4.19 lakh at the end of FY26 — driven primarily by growth in its retail business, which saw a 17% rise in workforce.

Not all divisions grew equally. Jio Platforms saw its headcount fall nearly 21%, from 94,523 in FY25 to 74,822 in FY26. The media and entertainment business shed 8% of its staff, and the oil-to-chemicals division saw a 6% decline.

According to a Mint report, recruiters cited two broader reasons for the drop in new hires across companies. Redeployment driven by AI adoption and a sluggish job market that is reducing voluntary employee exits.

India's IT Workforce Is Ageing

The decline in fresher hiring is also reflected in the age profile of India's IT workforce.

At Infosys, India's second-largest IT services firm, employees aged 30 and below made up approximately 50.7% of its 3.28 lakh workforce at the end of FY26, down from 53% in FY25 and the lowest proportion in 15 years, according to a Mint analysis of annual reports.

Until FY18, those aged 30 and below had consistently made up at least two-thirds of Infosys' workforce. This comes despite Infosys management indicating it would hire at least 20,000 freshers in FY26, a target it reportedly met. The company is expected to maintain a similar hiring target for FY27.

At Tata Consultancy Services (TCS), India's largest IT firm, employees under 30 accounted for approximately 48% of its 6.08 lakh workers in FY25, the lowest share since FY22. TCS ended FY26 with 5.84 lakh employees, a decline of 23,460, partly attributed to a layoff exercise in July in which around 12,000 employees were let go.

"Selective IT firms are looking to hire fewer young people, as automation tools are reducing the need for young graduates unless they have specialised skill sets," Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities, told Mint. He added that companies are increasingly focusing on employees between the ages of 30 and 40, who can be upskilled and bring deeper familiarity with client ecosystems.

Peter Bendor-Samuel, founder of Everest Group, pointed to another challenge. "With the new emerging AI talent, the tech services firms are having to hire employees with a higher calibre, which is harder to source, and in general, do not view the tech services firms as their first choice to work at," he told the newspaper.

Global Firms Expand in India With Fewer People

Despite that, India continues to be a preferred destination for multinational companies, drawn by its large skilled workforce and relatively lower operating costs. However, the nature of that expansion is changing. At a recent Reuters Summit, executives from several global firms indicated that the next phase of growth in India would be led more by AI-driven productivity than by adding headcount.

At the summit, Novo Nordisk said it was using AI to accelerate drug launches while expanding India's role in global operations, but expected to remain "conservative" on hiring.

Commercial vehicle manufacturing giant Daimler Truck reportedly said AI tools were helping engineers in India generate intellectual property faster, while the company focused on sourcing niche talent in AI, cybersecurity, and digital technologies.

Epsilon, the technology and marketing services arm of Publicis Groupe, said AI was driving productivity gains even as headcount remained largely steady, according to news agency Reuters.

Lalit Ahuja, CEO of ANSR, said growth from a people standpoint would taper over time. "Companies are hiring fewer people, just as a matter of abundant caution," he said, as quoted by the agency.

India's technology job market is currently at its weakest point in over two years. Active tech job openings fell to 93,000 in June, the lowest in 28 months, marking a 14% month-on-month and 17% year-on-year (YoY) decline, Xpheno reported.