Pune’s once-thriving IT sector faces turmoil as AI-driven layoffs and workplace exploitation dim its shine. Employees grapple with job insecurity and unfair treatment, sparking calls for better protections.
Pune | 31 July, 2025: Pune, long hailed as India’s IT powerhouse, is facing a sobering reality check. The city’s tech hub, centered around the Rajiv Gandhi Infotech Park in Hinjawadi, is reeling from the combined pressures of artificial intelligence (AI) advancements, global economic slowdowns, and troubling workplace practices. What was once a beacon of high-paying jobs and professional prestige is now grappling with job cuts, exploitation, and a growing sense of uncertainty among its workforce.
The global IT industry is feeling the pinch from economic downturns in key markets like the US and Europe, which Indian firms heavily rely on. In Pune, this translates to significant job losses, with one major IT giant reportedly planning to cut 12,000 jobs worldwide, a move that will hit the city hard. Stories of long-serving employees, including one with 12 years of experience, being pressured to resign have surfaced, highlighting a harsh reality behind the industry’s glossy facade. These incidents often go unreported to labor authorities, as most IT professionals don’t qualify as “workers” under current labor laws, leaving them vulnerable with little recourse.
Beyond large corporations, smaller IT firms in Pune are adding to the crisis. Reports of underpayment and forced overtime are rampant, with some employees enduring hostile work environments. Women in the sector have raised alarms, filing complaints with the Women’s Commission about mistreatment, with one case prompting six employees to resign abruptly from a small company. These stories reveal a stark contrast to the industry’s outward image of prosperity and opportunity.
For Pune’s tech workers, the rise of AI is a double-edged sword. While it drives innovation, it also fuels job insecurity, as automation threatens roles once considered secure. The lack of legal protections exacerbates the situation, leaving employees at the mercy of corporate decisions and economic shifts. The city’s IT dream, once a symbol of aspiration for countless professionals, is now clouded by fears of redundancy and unfair treatment.
The human toll of this crisis is profound. Families who banked on stable IT careers are facing uncertainty, while young professionals entering the field encounter a landscape far less promising than before. The community is beginning to demand change, from stronger worker protections to fairer workplace practices, to restore trust in an industry that has long defined Pune’s identity.
As the city navigates this IT crisis, the path forward requires addressing both technological disruptions and human concerns. Pune’s tech hub, once a source of pride, stands at a crossroads. By tackling exploitation and advocating for employee rights, the city can work toward a future where its IT sector regains its shine, not just for profits but for the people who power it.
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