Hiring freeze hits 63% of Indian companies amid geopolitical turmoil: Report

Indian workplaces are feeling the tremors of escalating global tensions, with a staggering 63% of companies freezing hiring or downsizing their workforce, according to a new report by staffing solutions firm Genius Consultants. The findings come at a time when the ripple effects of geopolitical instability—particularly from the ongoing wars in the Middle East—are reshaping internal HR policies and employment dynamics across the country.

Based on an online survey conducted between 12 May and 6 June, the report captures the sentiment of 2,006 employees across multiple sectors. The results present a stark picture of the evolving employment landscape in India, marked by uncertainty, cost-cutting, and cautious hiring strategies.

“This survey is a direct reflection of the times we are in. The external world is reshaping internal work realities at a pace faster than many expected,” said R P Yadav, Chairman and Managing Director of Genius Consultants.

The core of the report centres around the dramatic pullback in recruitment. A combined 63% of respondents indicated that their organisations have either paused hiring or actively reduced headcount. Another 15% of those surveyed noted a clear shift toward freelance and contract-based roles, as companies become increasingly wary of long-term commitments amid uncertain global scenarios.

This shift underscores a broader transition in how businesses approach workforce planning. Faced with rising costs and fragile international relations, many firms are preferring the flexibility of short-term talent over permanent hiring.

The economic squeeze is not limited to hiring alone. According to the report:

• 36% of respondents said their salary growth, appraisals or bonuses had been directly impacted.
  
  

• 21% cited an increase in workload pressure and tighter project timelines, as reduced teams carry heavier responsibilities.
  
  

• 22% reported disruptions to international travel or global business exposure, reflecting the logistical impact of strained foreign relations.
  
  

• Another 21% revealed that team morale and job confidence are dipping as the business environment becomes more volatile.
  
  

These numbers highlight the cumulative burden on Indian employees, who now face the double threat of professional stagnation and job insecurity.

The emotional toll of this uncertain climate is evident. According to the survey, 30% of respondents admitted they are “extremely worried” and have already begun noticing warning signs in their respective organisations. Meanwhile, 26% described themselves as mildly concerned, though they continue to monitor the situation closely.

Yet, it is not all doom and gloom. A significant number of employees are taking proactive steps in response to the uncertainty. More than 55% are upskilling or enrolling in certifications, equipping themselves with future-proof skills. Another 31% are exploring new job opportunities or backup roles, clearly indicating that professionals are preparing for potential disruptions ahead.

“With 63 per cent of companies freezing or downsizing and employees actively upskilling or seeking alternatives, it is clear that we are not just navigating a moment, we’re transitioning into a new era of work,” added Yadav.

The report paints a compelling picture of how external shocks—from warzones to global trade tensions—are now directly shaping India’s corporate corridors. Companies are becoming leaner and more agile, while employees are evolving to remain relevant in a shifting work landscape.

While it remains unclear how long this hiring freeze will persist, what’s evident is that both employers and employees are entering a transformative phase—marked by caution, preparation, and adaptation.

“Employers must remain transparent and adaptive, while employees continue to stay resilient, agile, and prepared for the road ahead,” Yadav emphasised.