Software job postings fall 12.3% as AI reshapes tech hiring in India: Indeed

Hiring demand for technology professionals is weakening in India, with software development roles experiencing a sharp decline as companies navigate artificial intelligence adoption, automation and evolving workforce priorities.

According to new data released by Indeed, job postings for software development positions in India fell 12.3% over the past three months, making it one of the hardest-hit categories within the technology sector.

The findings come as employers across the industry reassess hiring needs, accelerate AI adoption and continue restructuring teams to align with changing business requirements.

Technology roles see sharper decline than overall hiring

The report shows that the slowdown in technology hiring is outpacing the broader labour market.

Indeed's data found that overall job postings on its platform declined by 0.7% in May 2026. Technology-related roles, however, recorded significantly steeper drops.

Among the key declines reported:

• Software development: down 12.3%
• IT infrastructure, operations and support: down 10.2%
• IT systems and solutions: down 9.3%
• Data and analytics: down 6.7%

The figures suggest technology employers are becoming more selective in their recruitment strategies even as demand for digital transformation and AI capabilities continues to grow.

AI transition reshapes workforce priorities

While Indeed's study does not directly attribute the hiring slowdown to artificial intelligence, the findings arrive during a period of significant change across the global technology industry.

Companies worldwide are investing heavily in generative AI, automation tools and agent-based systems designed to improve productivity and streamline operations.

At the same time, many organisations are reviewing workforce structures and evaluating how AI can be integrated into software development, customer support, analytics and operational functions.

The shift is occurring against a backdrop of workforce reductions at several major technology companies over the past year.

Industry developments cited by India Today include:

• Amazon reducing approximately 30,000 corporate and technology roles between October 2025 and January 2026
• Meta announcing 8,000 job cuts in April 2026
• Microsoft offering voluntary retirement programmes affecting approximately 8,750 US employees during the same month

The changes highlight a broader recalibration taking place across the technology sector as businesses adapt to new technological realities.

Return-to-office trends gather pace

The Indeed data also points to a decline in remote work opportunities across several technology functions.

Software development, IT infrastructure and support roles have experienced some of the most significant reductions in remote job availability, with remote work share declining by 4.4%.

According to Indeed, the trend may reflect changing employer attitudes towards workplace flexibility and a growing emphasis on office-based collaboration.

The company noted in its analysis that shifts in remote work availability can also be linked to employers seeking to widen candidate pools or improve recruitment outcomes.

Non-tech sectors emerge as hiring bright spots

While technology hiring has weakened, several non-technology sectors are moving in the opposite direction.

Indeed's data shows strong hiring momentum in industries linked to consumer services, wellness and personal care.

Among the fastest-growing categories:

• Sports: job postings up 41%
• Beauty and wellness: up 36%
• Personal care and home health: up 34%

The contrast highlights how hiring demand is becoming increasingly uneven across industries, with some sectors expanding rapidly while technology employers take a more cautious approach.

A market in transition

The latest figures suggest India's technology labour market is entering a period of adjustment rather than outright contraction.

Demand for technology skills remains substantial, but employers appear to be becoming more targeted in their hiring as AI capabilities mature and business priorities evolve.

New roles linked to artificial intelligence, automation and specialised engineering disciplines are beginning to emerge, even as traditional technology functions experience slower growth.

How quickly organisations move from experimentation to large-scale AI deployment is likely to shape hiring trends over the coming months. For job seekers and employers alike, the data points to a technology workforce that is being redefined by changing skills requirements, new operating models and the growing influence of AI.

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