India's IT sector just cut 23,460 jobs at TCS alone. The $315B model that built its middle class is collapsing.

TCS cut 23,460 employees in FY26. The top five Indian IT firms shed nearly 7,000 jobs net — reversing the 12,718 they added the year before.

But the real number is worse. TeamLease projects 25,000-35,000 "silent layoffs" this year. No announcements. No severance. Just performance reviews that suddenly find you lacking and hiring freezes that never lift.

66% of Indian AI/ML workers told Blind they expect a layoff or major headcount cut within 3-6 months. The people building the AI are now being replaced by it.

Nasscom's president just confirmed the structural break: revenue grew 6.1% while headcount grew 2.3%. The linearity that tied growth to hiring is dead. And 20-25% of India's tech services firms may not survive the transition from FTE billing to AI-driven outcomes.

This isn't just an industry problem. 10-15 million Indians in IT anchor the country's aspirational middle class. If that engine stalls, India's growth story stalls with it.

Audit your India vendor contracts now. The firms that survive will be smaller, AI-native, and outcome-based. The ones that won't survive are your next procurement crisis.