AI is changing the jobs market: 1.76 lakh cuts reveal a bigger workforce shift1.76 lakh jobs gone in 2026: AI is only part of the storyFrom Amazon to Microsoft: How AI is reshaping the jobs companies hire forAI, automation and cost cuts: Why so many companies are redesigning their workforceThe AI jobs reset has begun: What 1.76 lakh layoffs reveal about the future of work<h2>Why companies are cutting jobs even as AI hiring accelerates</h2>AI is not the only reason for 1.76 lakh job cuts here’s what is really changingAmazon, Meta, Microsoft and others are cutting jobs. Is AI changing work forever?The 2026 layoff wave is bigger than AI: Here’s what is driving the workforce reset1.76 lakh job cuts and counting: How companies are rebuilding around AI&nbsp;1.76 lakh job cuts in 2026: How AI is quietly changing the jobs companies want&nbsp;

The global jobs market is undergoing a major reset in 2026. Companies across technology, finance, retail, media, gaming and automobiles have announced large workforce reductions, with a calculation based on disclosed figures in the source material putting the number at around 1.76 lakh job cuts so far. But the bigger story is not simply the number of layoffs. Artificial intelligence (AI), automation, cost pressures and changing business models are forcing companies to rethink what their workforce should look like. Some are cutting roles while simultaneously increasing investment in AI and hiring for specialised skills.<h2>AI is becoming part of the workforce reset</h2>Technology companies are among the biggest examples. Atlassian announced around 1,600 job cuts while saying the move would help fund investment in AI and enterprise sales. Intuit announced around 3,000 cuts, or 17 per cent of its global workforce, as it streamlined operations and focused on areas including AI. That does not mean AI is directly replacing every employee who loses a job. Companies are also responding to high costs, weaker demand, post-pandemic over-hiring, organisational restructuring and changing consumer behaviour. Uber, for example, has focused on reducing management layers rather than directly blaming AI for its workforce reduction.<h2>The AI story is spreading beyond Silicon Valley</h2>The workforce reset is no longer limited to software companies. Volkswagen has planned another 50,000 workforce reduction as part of its transformation programme, while Porsche has agreed to additional cuts and Jaguar Land Rover has announced plans to reduce around 4,000 jobs over two years. The automotive industry is dealing with high costs, excess capacity, changing demand, tariffs and growing competition from Chinese electric vehicle makers. Gaming is also being reshaped.Microsoft announced around 4,800 job cuts in July, including major changes to Xbox. Another 268 affected Xbox roles were announced in September.<h2>What does this mean for workers?</h2>The emerging pattern is important: companies can cut jobs in one department while aggressively investing in another. That means the future of work may not simply be about AI replacing humans. It could be about companies redesigning jobs around AI, automation and smaller organisational structures. The source's list includes major workforce reductions at Amazon, Dell, Oracle, Meta, Cisco, PayPal, Microsoft, Apple, Uber and others. However, the calculated 1.76 lakh figure includes only disclosed numerical figures and excludes percentage-based and undisclosed cuts, so it should not be treated as the total number of people laid off globally in 2026. <h2>For workers, that makes adaptable skills increasingly important</h2>Understanding AI tools, data, technology and specialised business functions could become more valuable as companies redirect spending towards areas they see as strategically important. At the same time, maintaining a portfolio, professional network and an additional marketable skill could provide greater career flexibility. The biggest change may therefore not be the disappearance of work. It may be the disappearance of some types of work and the rapid creation of new expectations around the jobs that remain.

From Amazon and Meta to Microsoft, Volkswagen and Uber, workforce cuts have spread across industries in 2026. AI is accelerating some restructuring, but cost pressures, automation and changing business models are reshaping jobs too.

AI is changing the jobs market: 1.76 lakh cuts reveal a bigger workforce shift 1.76 lakh jobs gone in 2026: AI is only part of the story From Amazon to Microsoft: How AI is reshaping the jobs companies hire for AI, automation and cost cuts: Why so many companies are redesigning their workforce The AI jobs reset has begun: What 1.76 lakh layoffs reveal about the future of work Why companies are cutting jobs even as AI hiring accelerates AI is not the only reason for 1.76 lakh job cuts here’s what is really changing Amazon, Meta, Microsoft and others are cutting jobs. Is AI changing work forever? The 2026 layoff wave is bigger than AI: Here’s what is driving the workforce reset 1.76 lakh job cuts and counting: How companies are rebuilding around AI 1.76 lakh job cuts in 2026: How AI is quietly changing the jobs companies want

From Amazon and Meta to Microsoft, Volkswagen and Uber, workforce cuts have spread across industries in 2026. AI is accelerating some restructuring, but cost pressures, automation and changing business models are reshaping jobs too.

‘1.76 lakh job cuts in 2026’: How AI is quietly changing the jobs companies want

For decades, London's army of analysts, coders, lawyers and consultants formed the backbone of one of the world's great financial capitals. Now, that workforce is shrinking at a pace that has alarmed economists, recruiters and policymakers alike, as artificial intelligence quietly automates away the very jobs that once defined the city's professional class.&nbsp;The Numbers Tell The Story&nbsp;The scale of the shift is stark. Finance analyst vacancies in London have collapsed from more than 350 roles four years ago to roughly 80 today, according to recruitment data cited in recent reporting. White-collar postings now account for only around a quarter of all London job listings, down from nearly half just a few years ago. Corporate lawyers, software developers, management consultants and digital marketing managers have all seen their vacancy counts fall from the hundreds into the double digits.&nbsp;Half The City's Workforce At Risk&nbsp;Research from the Greater London Authority paints an even bigger picture. An estimated 2.4 million London workers, close to half the capital's entire workforce, face some degree of automation risk from AI. Of those, more than 300,000 workers, including bookkeepers, brokers and administrative staff, fall into the high-risk category for displacement, while another 748,000 sit in the next tier of exposure.&nbsp;Banks Are Leading The Cuts&nbsp;Major employers are already acting on this shift. Standard Chartered has outlined plans to eliminate around 8,000 roles as part of AI-driven efficiency measures, while HSBC is reportedly weighing cuts of close to 20,000 jobs. In the hedge fund world, recruiters describe a similar pattern: the layers of junior staff that once supported portfolio managers are disappearing as firms hand a single employee an AI tool instead of building out a full team. Even executive assistant roles are being quietly phased out as AI takes over scheduling and travel booking.&nbsp;The UK Is Losing Jobs Faster Than Anyone Else&nbsp;A Morgan Stanley analysis found that UK firms reported net job losses linked directly to AI of around 8% over the past 12 months, roughly double the international average among comparable economies including the US, Germany, Japan and Australia. The twist is that UK companies are not lagging on AI productivity: gains of around 11.5% roughly matched those seen in the US. But while American firms with similar productivity gains tended to create more jobs than they cut, British employers have largely done the opposite, with more than 40% of executives admitting AI is being used specifically to reduce headcount rather than expand the business.&nbsp;A Generation Locked Out&nbsp;The fallout is landing hardest on younger workers. Software developer and consultant vacancies have fallen 37% since the launch of ChatGPT, compared with a 26% decline across the jobs market as a whole, and UK youth unemployment has climbed to 13.7%, its highest level since 2020. Early-career roles requiring two to five years of experience are among the most exposed, raising concerns that the entry-level pipeline into management is being cut off just as the next generation of workers tries to get a foothold.&nbsp;Taken together, the picture emerging from London is one of a city at the leading edge of AI's disruption of white-collar work, not in some distant future, but right now. Whether London becomes a cautionary tale or a model for managing the transition may depend on how quickly policymakers and employers respond to a workforce shift that, for hundreds of thousands of people, has already begun.

Finance analyst jobs in London have crashed from 350 to 80 in four years. New data shows nearly half the city's workforce faces AI-driven automation risk.

For decades, London's army of analysts, coders, lawyers and consultants formed the backbone of one of the world's great financial capitals. Now, that workforce is shrinking at a pace that has alarmed economists, recruiters and policymakers alike, as artificial intelligence quietly automates away the very jobs that once defined the city's professional class. The Numbers Tell The Story The scale of the shift is stark. Finance analyst vacancies in London have collapsed from more than 350 roles four years ago to roughly 80 today, according to recruitment data cited in recent reporting. White-collar postings now account for only around a quarter of all London job listings, down from nearly half just a few years ago. Corporate lawyers, software developers, management consultants and digital marketing managers have all seen their vacancy counts fall from the hundreds into the double digits. Half The City's Workforce At Risk Research from the Greater London Authority paints an even bigger picture. An estimated 2.4 million London workers, close to half the capital's entire workforce, face some degree of automation risk from AI. Of those, more than 300,000 workers, including bookkeepers, brokers and administrative staff, fall into the high-risk category for displacement, while another 748,000 sit in the next tier of exposure. Banks Are Leading The Cuts Major employers are already acting on this shift. Standard Chartered has outlined plans to eliminate around 8,000 roles as part of AI-driven efficiency measures, while HSBC is reportedly weighing cuts of close to 20,000 jobs. In the hedge fund world, recruiters describe a similar pattern: the layers of junior staff that once supported portfolio managers are disappearing as firms hand a single employee an AI tool instead of building out a full team. Even executive assistant roles are being quietly phased out as AI takes over scheduling and travel booking. The UK Is Losing Jobs Faster Than Anyone Else A Morgan Stanley analysis found that UK firms reported net job losses linked directly to AI of around 8% over the past 12 months, roughly double the international average among comparable economies including the US, Germany, Japan and Australia. The twist is that UK companies are not lagging on AI productivity: gains of around 11.5% roughly matched those seen in the US. But while American firms with similar productivity gains tended to create more jobs than they cut, British employers have largely done the opposite, with more than 40% of executives admitting AI is being used specifically to reduce headcount rather than expand the business. A Generation Locked Out The fallout is landing hardest on younger workers. Software developer and consultant vacancies have fallen 37% since the launch of ChatGPT, compared with a 26% decline across the jobs market as a whole, and UK youth unemployment has climbed to 13.7%, its highest level since 2020. Early-career roles requiring two to five years of experience are among the most exposed, raising concerns that the entry-level pipeline into management is being cut off just as the next generation of workers tries to get a foothold. Taken together, the picture emerging from London is one of a city at the leading edge of AI's disruption of white-collar work, not in some distant future, but right now. Whether London becomes a cautionary tale or a model for managing the transition may depend on how quickly policymakers and employers respond to a workforce shift that, for hundreds of thousands of people, has already begun.

Finance analyst job postings in London have crashed from over 350 to around 80 in just four years. New data shows nearly half the city's workforce faces some level of AI-driven automation risk, and white-collar roles are vanishing faster than anywhere else in the world.

How London could become AI's layoff apocalypse fallout zone

The French automotive supply chain is facing a dire outlook, according to a stark warning issued by Jean-Louis Pech, the president of the Federation of Vehicle Equipment Industries (Fiev). Speaking at a press conference on Wednesday, Pech painted a grim picture of the sector's future, suggesting that it could see a dramatic reduction in its workforce over the next few years.

&nbsp;

Pech highlighted several factors contributing to this potential crisis. Firstly, he pointed to the overall decline in car sales volumes, which has been putting pressure on suppliers. He noted a deceleration in the electric vehicle market, which had previously been seen as a growth area for the industry. Lastly, he emphasised the increasing competition from Chinese manufacturers, which is further squeezing French suppliers.

&nbsp;

The gravity of the situation was highlighted by Pech's sobering prediction. He stated that, given the current trajectory of the industry, it wouldn't be an overstatement to suggest that the sector could lose as much as half of its jobs within the next five years. Even more alarmingly, he cautioned that this drastic reduction in employment could occur "very, very quickly."

&nbsp;

There&nbsp;are some&nbsp;implications of Jean-Louis Pech's warning, such as:

&nbsp;

1. Scale of the Industry:

The French automotive supply sector is a crucial component of the country's manufacturing industry. It encompasses hundreds of companies, ranging from small specialized firms to large multinational corporations, employing tens of thousands of workers across France. The potential loss of half these jobs would represent a significant blow to the French economy and industrial base.

&nbsp;

2. Factors Contributing to the Crisis:

&nbsp;

a) Declining Car Sales:

The global automotive industry has been facing challenges in recent years, with car sales in many markets, including Europe, experiencing downturns. This decline has been exacerbated by various factors, including economic uncertainties, changing consumer preferences, and the impact of the COVID-19 pandemic.

&nbsp;

b) Electric Vehicle Market Slowdown:

While the electric vehicle (EV) sector has been seen as a promising area for growth, its development hasn't been as rapid or smooth as many had hoped. Issues such as high vehicle costs, limited charging infrastructure, and consumer hesitancy have contributed to a slower-than-expected adoption rate in some markets.

&nbsp;

c) Chinese Competition:

China has emerged as a formidable player in the global automotive market, particularly in the EV sector. Chinese manufacturers have been able to produce vehicles and components at competitive prices, putting pressure on European suppliers. This competition extends beyond just finished vehicles to include critical components like batteries and electronic systems.

The French automotive supply chain is facing a dire outlook, according to a stark warning issued by Jean-Louis Pech, the president of the Federation of Vehicle Equipment Industries (Fiev).

The French automotive supply chain is facing a dire outlook, according to a stark warning issued by Jean-Louis Pech, the president of the Federation of Vehicle Equipment Industries (Fiev). Speaking at a press conference on Wednesday, Pech painted a grim picture of the sector's future, suggesting that it could see a dramatic reduction in its workforce over the next few years. Pech highlighted several factors contributing to this potential crisis. Firstly, he pointed to the overall decline in car sales volumes, which has been putting pressure on suppliers. He noted a deceleration in the electric vehicle market, which had previously been seen as a growth area for the industry. Lastly, he emphasised the increasing competition from Chinese manufacturers, which is further squeezing French suppliers. The gravity of the situation was highlighted by Pech's sobering prediction. He stated that, given the current trajectory of the industry, it wouldn't be an overstatement to suggest that the sector could lose as much as half of its jobs within the next five years. Even more alarmingly, he cautioned that this drastic reduction in employment could occur "very, very quickly." There are some implications of Jean-Louis Pech's warning, such as: 1. Scale of the Industry: The French automotive supply sector is a crucial component of the country's manufacturing industry. It encompasses hundreds of companies, ranging from small specialized firms to large multinational corporations, employing tens of thousands of workers across France. The potential loss of half these jobs would represent a significant blow to the French economy and industrial base. 2. Factors Contributing to the Crisis: a) Declining Car Sales: The global automotive industry has been facing challenges in recent years, with car sales in many markets, including Europe, experiencing downturns. This decline has been exacerbated by various factors, including economic uncertainties, changing consumer preferences, and the impact of the COVID-19 pandemic. b) Electric Vehicle Market Slowdown: While the electric vehicle (EV) sector has been seen as a promising area for growth, its development hasn't been as rapid or smooth as many had hoped. Issues such as high vehicle costs, limited charging infrastructure, and consumer hesitancy have contributed to a slower-than-expected adoption rate in some markets. c) Chinese Competition: China has emerged as a formidable player in the global automotive market, particularly in the EV sector. Chinese manufacturers have been able to produce vehicles and components at competitive prices, putting pressure on European suppliers. This competition extends beyond just finished vehicles to include critical components like batteries and electronic systems.

French auto supplier association warns sector of losing employment

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COVID-19: Workers face permanent job losses; Chileans turn bakers & pizza makers

The number of people in work in Britain fell by the most since 2009 in the three months through June as the coronavirus crisis took a heavy toll on the labour market, even with the government’s huge jobs protection scheme still in place.

Led by a record plunge in self-employed workers, there were 220,000 less people employed in the second quarter, the Office for National Statistics said.

Separate tax data for July showed that the number of staff on company payrolls had fallen by 730,000 since March, sounding the alarm about a potentially much bigger rise in joblessness.

Mounting job losses are expected as Britain winds down its job retention scheme which protects employees. It is due to close at the end of October.

<a href="https://www.wionews.com/world/boris-johnson-to-ask-schools-to-reopen-by-september-reports-319158">Also read|&nbsp;Boris Johnson to ask schools to reopen by September: Reports</a>

“The cracks evident in the latest batch of labour market data are likely to soon turn into a chasm,” said Ruth Gregory, senior economist at Capital Economics.

British finance minister Rishi Sunak said the figures showed the government’s support programmes were working but job losses were inevitable.

“I’ve always been clear that we can’t protect every job, but ... we have a clear plan to protect, support and create jobs to ensure that nobody is left without hope,” he said.

The unemployment rate unexpectedly held at 3.9 per cent but that reflected an increase in people who had given up looking for work and who were therefore not considered to be unemployed, and people who said they were in work but were getting no pay.

<a href="https://www.wionews.com/videos/uk-pm-boris-johnson-announces-additional-funding-for-nhs-314088">Also watch|&nbsp;UK PM Boris Johnson announces additional funding for NHS</a>

Economists polled by Reuters had expected the unemployment rate to rise to 4.2 per cent. Last week the Bank of England forecast the jobless rate would hit 7.5 per cent at the end of this year.

“Government needs to step in and help those who are likely to lose their job retrain for new openings in different sectors,” KPMG economist Yael Selfin said.

The number of self-employed people fell by a record amount in the three months to June, led by older workers, while the number of employees rose - something the ONS said was partly accounted for by workers reclassifying themselves as employed.

The number of people claiming universal credit - a benefit for the unemployed and those on low pay - rose to 2.689 million in July, leaping by 117 per cent from March.

Pay fell by the most in more than 10 years in the April-June period, down 1.2 per cent, reflecting how workers on the job retention scheme receive 80 per cent of their pay. Excluding bonuses, pay fell for the first time since records began in 2001.

However, there was a small increase in job vacancies in the three months to July.

“The increase was driven by small businesses (less than 50 employees), some of which reported taking on staff to meet coronavirus (COVID-19) guidelines,” the ONS said.

The number of people in work in Britain fell by the most since 2009 in the three months through June as the coronavirus crisis took a heavy toll on the labour market, even with the government’s huge jobs protection scheme still in place.

The number of people in work in Britain fell by the most since 2009 in the three months through June as the coronavirus crisis took a heavy toll on the labour market, even with the government’s huge jobs protection scheme still in place. Led by a record plunge in self-employed workers, there were 220,000 less people employed in the second quarter, the Office for National Statistics said. Separate tax data for July showed that the number of staff on company payrolls had fallen by 730,000 since March, sounding the alarm about a potentially much bigger rise in joblessness. Mounting job losses are expected as Britain winds down its job retention scheme which protects employees. It is due to close at the end of October. Also read| Boris Johnson to ask schools to reopen by September: Reports “The cracks evident in the latest batch of labour market data are likely to soon turn into a chasm,” said Ruth Gregory, senior economist at Capital Economics. British finance minister Rishi Sunak said the figures showed the government’s support programmes were working but job losses were inevitable. “I’ve always been clear that we can’t protect every job, but ... we have a clear plan to protect, support and create jobs to ensure that nobody is left without hope,” he said. The unemployment rate unexpectedly held at 3.9 per cent but that reflected an increase in people who had given up looking for work and who were therefore not considered to be unemployed, and people who said they were in work but were getting no pay. Also watch| UK PM Boris Johnson announces additional funding for NHS Economists polled by Reuters had expected the unemployment rate to rise to 4.2 per cent. Last week the Bank of England forecast the jobless rate would hit 7.5 per cent at the end of this year. “Government needs to step in and help those who are likely to lose their job retrain for new openings in different sectors,” KPMG economist Yael Selfin said. The number of self-employed people fell by a record amount in the three months to June, led by older workers, while the number of employees rose - something the ONS said was partly accounted for by workers reclassifying themselves as employed. The number of people claiming universal credit - a benefit for the unemployed and those on low pay - rose to 2.689 million in July, leaping by 117 per cent from March. Pay fell by the most in more than 10 years in the April-June period, down 1.2 per cent, reflecting how workers on the job retention scheme receive 80 per cent of their pay. Excluding bonuses, pay fell for the first time since records began in 2001. However, there was a small increase in job vacancies in the three months to July. “The increase was driven by small businesses (less than 50 employees), some of which reported taking on staff to meet coronavirus (COVID-19) guidelines,” the ONS said.

UK suffers biggest job losses since 2009 as COVID hits

The merger of 10 public sector banks (PSBs) to form four big lenders will create more jobs and not lead to any retrenchment as being claimed by some trade unions, Finance Secretary Rajiv Kumar has said.

"When the size of a bank becomes big, then its business will also grow, resulting in more job creation. There is no question of retrenchment," he told ANI in an exclusive interview.

"Look at the past example of mergers with State Bank of India. See the example of three banks merging with Bank of Baroda. There was no retrenchment. This is an issue of providing better facilities to bank employees," said Kumar.

The merger of PSBs is imperative for India to become a five trillion dollar economy in the next five years. "You have to adopt a banking system which is clean and impactful. In 2017, there were 27 PSBs. Now we have only 12."

Kumar said there will be three types of banks in future: PSBs with a strong national presence and global reach, PSBs with a national presence and PSBs with a regional presence. After the merger, PSBs can do investments, cut expenditure and increase facilities for customers. The merger will benefit customers in tier 2 and tier 3 cities, he added.

Kumar said the merger will benefits employees working in small banks. Besides, they will have more opportunities for transfers. For example, the merger of Indian Bank and Allahabad Bank will give opportunities to employees to move from North to South, or the other way round.

"If there is any problem, then the government is there for solutions," he said.

The merger of 10 public sector banks (PSBs) to form four big lenders will create more jobs and not lead to any retrenchment as being claimed by some trade unions, Finance Secretary Rajiv Kumar has said.

The merger of 10 public sector banks (PSBs) to form four big lenders will create more jobs and not lead to any retrenchment as being claimed by some trade unions, Finance Secretary Rajiv Kumar has said. "When the size of a bank becomes big, then its business will also grow, resulting in more job creation. There is no question of retrenchment," he told ANI in an exclusive interview. "Look at the past example of mergers with State Bank of India. See the example of three banks merging with Bank of Baroda. There was no retrenchment. This is an issue of providing better facilities to bank employees," said Kumar. The merger of PSBs is imperative for India to become a five trillion dollar economy in the next five years. "You have to adopt a banking system which is clean and impactful. In 2017, there were 27 PSBs. Now we have only 12." Kumar said there will be three types of banks in future: PSBs with a strong national presence and global reach, PSBs with a national presence and PSBs with a regional presence. After the merger, PSBs can do investments, cut expenditure and increase facilities for customers. The merger will benefit customers in tier 2 and tier 3 cities, he added. Kumar said the merger will benefits employees working in small banks. Besides, they will have more opportunities for transfers. For example, the merger of Indian Bank and Allahabad Bank will give opportunities to employees to move from North to South, or the other way round. "If there is any problem, then the government is there for solutions," he said.

Finance Secretary dispels fears of job losses after merger of 10 PSU banks

Advanced technologies like AI will spawn new jobs and fears around job losses are misplaced, IT Minister Ravi Shankar Prasad has said, while admitting that India Inc needs to play a larger role in the efforts to upskill people.

"Remember, technology by its very nature requires skilling and I see potential for digital skilling in a big way which, by itself, will create a lot of jobs," Prasad told PTI.

He said IT ministry is working with other departments like Niti Aayog on various aspects of these advanced technologies, and is also engaged with software body Nasscom on skill development initiatives.

"We are working with Nasscom...Also, I have already set up several committees to examine the whole matter. Artificial Intelligence (AI) should be used for governance...for improvement. We are working quite closely with other departments like Niti Aayog," he explained.

Asked if the corporate India needed to put more efforts in this area, the minister said: "There is a scope for that. Nasscom is doing that but there is a need to do more".

He dismissed concerns that technology may displace jobs, but added that it is important for people to upskill to keep pace with changing requirements in the digital world.

"If a person is not up to date in new technology, then he may have a problem. You have to be tuned to the new technology," the minister said in a recent interview.

He noted that 39.8 lakh people are working directly in IT sector, while indirectly the sector employed about 1.3 crore people.

Additionally, 10 lakh people are involved in Common Service Centre (CSC) - which acts as access point for delivery of electronic governance services - while 4.5 lakh people are involved in mobile manufacturing activities in the country, he added.

"All these numbers are excluding the startup and entrepreneurship movement. When a new technology comes, new skilling comes in, it is going to bring more and more jobs, be very clear about this," he said.

The comments come amid reports of layoffs across various IT companies and apprehensions that increasing automation across sectors could make existing jobs redundant.

Nasscom had refuted such reports saying the IT industry continues to hire people on "net" basis although techies will have to reskill themselves to stay relevant.

IT companies, on their part, too had defended their position saying trimming of workforce is a part of annual performance reviews, a process that weeds out bottom performers or non-performers.

Nasscom had argued that tech startups, e-commerce, Digital India and digital payments are creating new opportunities for growth. As many as three million new jobs are expected to be created in the sector by 2025, as per industry estimates.&nbsp

A poll conducted by EY recently found that while business leaders are optimistic about the impact of AI on job creation, talent crisis remains.

"AI is creating jobs, yet 80 per cent of respondents say there is a lack of talent to fill positions," EY had said.

The IT sector is also battling challenges in business environment and stricter work permit regime in countries like the US, Singapore, Australia and New Zealand.

Asked if corporate India needed to put more efforts in this area, the minister said: "There is a scope for that. Nasscom is doing that but there is a need to do more".

Advanced technologies like AI will spawn new jobs and fears around job losses are misplaced, IT Minister Ravi Shankar Prasad has said, while admitting that India Inc needs to play a larger role in the efforts to upskill people. "Remember, technology by its very nature requires skilling and I see potential for digital skilling in a big way which, by itself, will create a lot of jobs," Prasad told PTI. He said IT ministry is working with other departments like Niti Aayog on various aspects of these advanced technologies, and is also engaged with software body Nasscom on skill development initiatives. "We are working with Nasscom...Also, I have already set up several committees to examine the whole matter. Artificial Intelligence (AI) should be used for governance...for improvement. We are working quite closely with other departments like Niti Aayog," he explained. Asked if the corporate India needed to put more efforts in this area, the minister said: "There is a scope for that. Nasscom is doing that but there is a need to do more". He dismissed concerns that technology may displace jobs, but added that it is important for people to upskill to keep pace with changing requirements in the digital world. "If a person is not up to date in new technology, then he may have a problem. You have to be tuned to the new technology," the minister said in a recent interview. He noted that 39.8 lakh people are working directly in IT sector, while indirectly the sector employed about 1.3 crore people. Additionally, 10 lakh people are involved in Common Service Centre (CSC) - which acts as access point for delivery of electronic governance services - while 4.5 lakh people are involved in mobile manufacturing activities in the country, he added. "All these numbers are excluding the startup and entrepreneurship movement. When a new technology comes, new skilling comes in, it is going to bring more and more jobs, be very clear about this," he said. The comments come amid reports of layoffs across various IT companies and apprehensions that increasing automation across sectors could make existing jobs redundant. Nasscom had refuted such reports saying the IT industry continues to hire people on "net" basis although techies will have to reskill themselves to stay relevant. IT companies, on their part, too had defended their position saying trimming of workforce is a part of annual performance reviews, a process that weeds out bottom performers or non-performers. Nasscom had argued that tech startups, e-commerce, Digital India and digital payments are creating new opportunities for growth. As many as three million new jobs are expected to be created in the sector by 2025, as per industry estimates. A poll conducted by EY recently found that while business leaders are optimistic about the impact of AI on job creation, talent crisis remains. "AI is creating jobs, yet 80 per cent of respondents say there is a lack of talent to fill positions," EY had said. The IT sector is also battling challenges in business environment and stricter work permit regime in countries like the US, Singapore, Australia and New Zealand.

Fear of job losses misplaced, says Ravi Shankar Prasad

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