Industry Newsai productivityenterprise ithiring trendsmidcap it
Mid-Size IT Firms Cut Hiring Due To AI
7.2
Mid-size Indian IT companies — Coforge, KPIT, Mphasis, Hexaware and LTIMindtree — reported slower hiring in the December quarter 2025, with collective net additions dropping from over 4,000 in Q2 to about 2,000 in Q3 and KPIT cutting 155 roles. Firms cite AI-driven productivity gains and outcome-based contracts (Coforge revenue per employee >$71,000) shifting hiring to specialised, role-critical recruitment.
Key Points
- 1Show reduced hiring: mid-cap net additions fell from over 4,000 in Q2 to about 2,000
- 2Attribute cause: AI-driven productivity and outcome-based contracts raised revenue per employee, reducing headcount needs
- 3Implication: firms prioritize specialised AI, cloud, and data skills, limiting volume hiring and fresher intake
Scoring Rationale
Timely, company-sourced evidence of AI-driven hiring shifts; limited broader data beyond mid-size Indian firms.
Sources
Public references used for this report.
Practice interview problems based on real data
1,625 SQL & Python problems across 15 industry datasets — the exact type of data you work with.
Try 250 free problems
