India's global capability centre (GCC) sector is undergoing a significant workforce transition, with job cut estimates ranging from 5,000 to as many as 30,000 roles this year as organisations pursue AI-led productivity gains and restructure operating models.
According to a report by Moneycontrol, the reductions are taking place even as GCCs continue to expand their strategic responsibilities across technology, engineering, artificial intelligence and product development. The trend highlights a shift away from broad-based hiring towards leaner teams with deeper technical expertise.
The development comes at a time when India remains the world's largest GCC destination, employing an estimated 2.4 million to 2.5 million professionals across more than 2,100 centres.
Wide variation in layoff estimates
Industry experts cited by Moneycontrol have offered differing assessments of the scale of workforce reductions.
Pareekh Jain, CEO of EIIRTrend, estimated that GCCs may have cut between 25,000 and 30,000 jobs this year. Meanwhile, Sameer Dhanrajani, CEO of 3AI, placed the figure significantly lower at around 4,000 to 5,000 roles.
Reported workforce reductions include:
- Around 200 jobs at PayPal
- Approximately 1,500 roles at Visa
- Workforce cuts at ServiceNow
- Reductions across several other GCC operations
While estimates vary, industry observers broadly agree that hiring priorities are changing as organisations seek greater efficiency through automation and AI-enabled workflows.
AI is reshaping how work is organised
The workforce changes are occurring alongside a broader transformation in the nature of work performed within GCCs.
Data cited by Moneycontrol indicates:
- 17.7% of GCC work is classified as commodity-based
- 38.1% of work is categorised as complex
- Around 55% of work portfolios have some exposure to potential AI displacement
Industry experts note that exposure to AI displacement does not imply equivalent job losses. Instead, it suggests that specific tasks within roles could be automated, redesigned or augmented through AI technologies.
As organisations deploy generative AI, automation tools and intelligent workflows, routine activities are increasingly being streamlined, changing the mix of skills required across teams.
Strategic value continues to rise
Despite workforce reductions in certain areas, GCCs are continuing to gain prominence within multinational organisations.
According to the report, centres in India are taking on larger mandates in:
- Artificial intelligence
- Software engineering
- Product development
- Enterprise platforms
- Technology innovation
Many of these responsibilities were previously concentrated at global headquarters or regional hubs outside India.
This shift means workforce size and strategic importance are no longer moving in parallel. A GCC may employ fewer people in some functions while assuming greater responsibility for critical products, platforms and AI systems.
A new phase for India's GCC ecosystem
The latest workforce adjustments underline a broader evolution within India's GCC landscape.
For more than a decade, growth was often measured through large-scale hiring and rapid headcount expansion. Today, organisations appear increasingly focused on productivity, automation and specialised expertise.
While some roles are being eliminated or redesigned, companies continue to establish new GCCs and recruit for niche technical positions. The result is a more selective hiring environment where advanced skills and business impact are becoming more important than workforce scale alone.
As AI adoption accelerates across global enterprises, India's GCC sector appears set to enter a new phase where capability depth, innovation and specialised talent define growth more than headcount expansion.