Why IT companies like Cognizant and Wipro are laying off employees

The layoffs in India's IT companies, one of the largest private employers providing jobs to more than 37 lakh people, are worrying. Combined with the backlash the IT industry is facing in the US on the H1-B visa front, and in countries such as Australia, the future of the industry as a beacon of hope for young professionals is dimming, feel many. Add to this a widespread pessimism in the sector that much of its workforce will become redundant very soon (McKinsey in a report puts this number at half the workforce) and it is bad news for job-seekers and the government, which is staring at slack job creation across all segments. It also draws a grim picture of the economy's growth, which was being postured to be picking up smartly despite the demonetisation impact. Every business is going through huge transformation with the rampant use of technology that is making several traditional jobs obsolete.