Indian global capability centres cut thousands of jobs amid AI-driven reset

Global Capability Centres (GCCs) operating in India shed thousands of jobs in 2025 as their multinational parent companies restructured operations in response to trade pressures, artificial intelligence adoption and broader macroeconomic challenges.

Between 5,500 and 6,000 employees were laid off across sectors including engineering, automotive, aerospace, retail and technology, according to data compiled by market intelligence firm UnearthIQ and engineering research platform EIIRTrend. Analysts suggest the true figure could be higher.

The job cuts came despite a year of robust expansion for the sector. India witnessed a record number of new GCC launches, with net new employment rising by an estimated 135,000 to 150,000 roles as multinational corporations continued to tap the country for skilled talent.

Industry experts describe the development as a short-term recalibration rather than a structural slowdown. Companies are consolidating non-strategic functions while rapidly scaling teams focused on artificial intelligence and related technologies.

Among the largest job reductions was the closure of visual effects and animation major Technicolor’s operations, which accounted for around 3,000 redundancies. Automotive technology firm AUMOVIO Ford reportedly planned to cut about 1,000 roles, while Fidelity Investments reduced its workforce by roughly 500. Other multinational firms, including Wells Fargo, Target, Boeing, Renault Nissan, Avaya and Oracle, also implemented restructuring measures affecting their Indian centres.

Gaurav Vasu, founder and chief executive of UnearthInsight and UnearthIQ, said Technicolor’s closure represented the single biggest reduction, with the remaining job losses spread across smaller teams in roughly 20 GCCs.

Pareekh Jain, chief executive of EIIRTrend, described the 6,000 figure as conservative, noting that lay-offs in global headquarters often have a direct knock-on effect on Indian teams, which are now tightly integrated into global product and operations structures.

Consultants say the cuts reflect a broader productivity reset as AI reshapes corporate workflows. Hani Mukhey, senior director at consulting firm Zinnov, said automation is transforming functions such as finance, human resources, compliance and engineering, leading to a shift in required skill sets.

“This does not automatically mean job losses, but it does mean a different talent mix,” she said, adding that some roles are tapering off while others are expanding rapidly.

Global technology giants, including Microsoft, Meta and Amazon, have restructured teams as part of portfolio reviews and cost optimisation efforts.

While some experimental or non-core product divisions were wound down, firms continue to invest heavily in cloud computing and enterprise AI capabilities.

Vasu noted that many displaced engineering and technology professionals were reabsorbed into the market within a quarter, driven by demand from more than 100 new greenfield GCCs established during the year.

Analysts expect some further restructuring in the near term as companies align workforce structures with evolving operating models. However, they emphasise that the overall trajectory of India’s GCC ecosystem remains positive.

Alouk Kumar, chief executive of advisory firm Inductus Group, said the simultaneous expansion and restructuring signal a market in transition rather than decline. He expects demand to shift increasingly towards higher-value, knowledge-intensive work.

India currently hosts around 1,800 GCCs employing approximately two million professionals. In 2025 alone, 101 new centres were launched and more than 115 existing operations expanded, underlining the country’s continued appeal as a global capability hub.

With agency input