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Karnataka engages with IT firms to gauge AI's impact on jobs amid industry layoffs
Karnataka's IT Minister Priyank Kharge announced ongoing discussions with tech firms to analyze AI's impact on jobs.
Amid growing concerns over large-scale layoffs in the tech industry, Karnataka IT Minister Priyank Kharge on Tuesday said the state government is in active discussions with companies to assess how artificial intelligence (AI) is affecting workforce trends. The findings of this evaluation are expected to be finalised within a month, he added.
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Speaking on the sidelines of an event hosted by SAP Labs India, Kharge said the state is conducting a survey with IT firms to understand how job roles are being reshaped due to AI, and what can be done to enhance the employability of Karnataka's tech talent.
“We're engaging with companies to understand how we can better prepare our human resources for evolving demands. A survey is currently underway to assess AI’s impact on employment, and we expect to conclude the exercise in about a month,” Kharge told PTI.
The state government’s initiative comes at a time when the tech industry is witnessing heightened anxiety following Tata Consultancy Services’ (TCS) decision to cut approximately 12,000 jobs in 2025. The move by India’s largest IT services firm has triggered fresh concerns across the sector, already grappling with sluggish demand, global macroeconomic headwinds, and geopolitical volatility.
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Kharge also addressed reports that the Karnataka State IT/ITeS Employees’ Union had sought action against TCS over the job cuts. He clarified that IT unions are not officially recognised in the state, but assured that the government would intervene if public concerns are raised.
“Karnataka does not formally recognise unions in the IT sector. However, if citizens or employees bring issues to our attention, it becomes our responsibility to respond and ensure a fair environment,” he said.
The broader tech landscape has seen a wave of downsizing across major players. Microsoft, the world’s second most valuable company after Nvidia, has laid off over 15,000 employees globally in 2025, amounting to nearly 7% of its workforce. CEO Satya Nadella, in a company-wide memo last month, acknowledged that the decision had been emotionally difficult.
Meanwhile, TCS has justified its layoffs as part of a larger transformation plan to position itself as a future-ready organisation. The company said the restructuring would involve strategic investments in new technologies, large-scale AI deployment, deeper partnerships, and market expansion, accompanied by a realignment of its workforce.
