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Oracle layoffs trigger fresh fears for Bengaluru housing market as IT slowdown deepens

Oracle layoffs and a broader IT slowdown are beginning to impact housing demand in Bengaluru as tech professionals delay big home purchases amid job uncertainty.

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Oracle layoff

Layoffs at Oracle have intensified concerns across India’s major technology hubs, with early signs now emerging in the housing markets of cities like Bengaluru, Hyderabad, Pune and NCR, where IT incomes have historically driven residential demand.

The job cuts, which reportedly affected around 12,000 employees in Oracle India, are part of a broader global workforce reduction plan that could total nearly 30,000 roles. The company cited organisational changes and informed affected employees that their roles had been eliminated with immediate effect, with termination emails reportedly sent early Tuesday morning US time.

The development comes at a time when growth in India’s IT services sector is already slowing after two decades of rapid expansion. Market experts say the combination of layoffs, slower hiring and automation is beginning to change financial behaviour among tech professionals, especially when it comes to large housing purchases.

Saurabh Mukherjea of Marcellus Investment Managers said in a podcast that the IT sector is entering a structural slowdown. Between 2005 and 2020, IT services firms grew revenues and headcount at roughly 15 percent annually, but growth has now slowed to around 5 to 6 percent, with hiring tapering off after the Covid period. He noted that the slowdown began even before artificial intelligence became a major factor.

Artificial intelligence is now accelerating the shift. A 2025 report by NITI Aayog estimated that up to 20 percent of jobs in IT services and call centres could be impacted by automation by 2031, adding further uncertainty to hiring trends.

Bengaluru shows early impact

Real estate experts say the first visible spillover is appearing in Bengaluru’s property market. Some technology professionals are reportedly postponing high-value home purchases, while others are choosing lower-cost housing to reduce financial risk.

This shift follows a sharp rise in housing prices between 2021 and 2023 and indicates a change in buyer behaviour rather than a sudden collapse in demand. However, analysts warn that prolonged hiring slowdowns or continued layoffs could weaken housing absorption and increase pressure on existing inventory.

Real estate consultant Vishal Bhargava noted that layoffs tend to affect housing demand in two ways — employees who lose jobs struggle with loan repayments, while those still employed often delay purchases due to fear of job loss.

Financial markets are already reflecting the transition. The Nifty IT index has fallen around 25 percent so far in 2026 as investors adjust growth expectations for the sector.

According to a note by ICICI Direct, the sector may be entering a deflationary phase where automation reduces human effort and compresses revenues linked to billable hours. The note estimates annual revenue deflation of 2 to 3 percent in the near term, with nearly 30 percent of the industry exposed. In a downside scenario, as much as 80 billion dollars of Indian IT revenue could be at risk.

Long-term outlook tied to AI transition

Despite the near-term concerns, the long-term outlook depends on how quickly companies adapt to AI-led services. Estimates suggest that AI-driven services could expand the total addressable market by 300 to 400 billion dollars by 2030.

India’s IT exports contribute roughly 300 billion dollars in foreign exchange, making the sector critical to the country’s economic stability. Any structural shift in the industry is therefore likely to have wider economic implications beyond the technology sector.

A research paper titled The 2028 Global Intelligence Crisis by Citrini Research outlined a hypothetical worst-case scenario in which rapid AI automation could lead to large-scale job losses and financial instability by 2028. The report argued that Indian IT firms could be vulnerable if global clients increasingly shift to AI coding tools available at significantly lower cost.

However, the authors described the scenario as a stress test rather than a base-case forecast. Even so, the report has intensified debate over how quickly IT firms can transition to higher-value AI services and whether the broader economy can absorb the shock if the transition is slow.

For now, early indicators — layoffs, slower hiring and cautious home buying — suggest that the impact of the IT sector’s slowdown is beginning to move beyond the technology industry into the broader economy.

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Karnataka Minister B Nagendra offers resignation over Valmiki case

Karnataka Minister B Nagendra has offered to resign amid BJP protests over alleged irregularities in the Valmiki Scheduled Tribes Development Corporation.

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Karnataka Minister B Nagendra has offered to resign from the cabinet amid mounting pressure from the opposition BJP over alleged financial irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

Nagendra made the offer on Wednesday as the BJP intensified its protests demanding his removal from the cabinet over the alleged Rs 89 crore irregularities linked to the corporation.

Sources said Chief Minister DK Shivakumar has asked Nagendra to wait until he holds discussions with the Congress high command.

Valmiki corporation case

The controversy came to light after corporation accounts officer Chandrasekharan P died by suicide in May 2024. He left behind a note alleging unauthorised transfers of funds.

Subsequent investigations alleged that large amounts of money were transferred from the corporation’s bank accounts to various accounts, triggering a political controversy and demands for action against Nagendra.

Nagendra was the Tribal Welfare Minister in the Siddaramaiah government at the time and resigned from the cabinet in June 2024 amid the controversy.

He was later re-inducted into the Karnataka cabinet on August 3 after DK Shivakumar became Chief Minister.

The latest development comes as the BJP has stepped up its campaign against Nagendra and continued demanding his resignation over the allegations.

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Supreme Court rejects Tarun Tejpal’s plea, grants three weeks to surrender

Supreme Court rejects Tarun Tejpal’s surrender exemption plea and grants him three weeks to surrender.

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The Supreme Court on Tuesday rejected former Tehelka Editor-in-Chief Tarun Tejpal’s plea seeking exemption from surrender in connection with the 2013 rape case.

The court directed Tejpal to surrender within three weeks. His appeal challenging the Bombay High Court’s conviction and 10-year prison sentence is to be taken up subject to compliance with the surrender requirement.

The Bombay High Court’s Goa bench had convicted Tejpal on August 6 and sentenced him to 10 years in prison, overturning his acquittal by a trial court in 2021.

What happened in the Supreme Court

During Tuesday’s hearing, the Goa government argued that Tejpal’s appeal could be heard only after he surrendered and submitted the required surrender certificate.

The Supreme Court rules require a person challenging a conviction to surrender before the appeal is heard, although an exemption from surrender can be sought.

Tejpal’s lawyer, Kapil Sibal, argued that the Bombay High Court had already stayed the operation of the conviction and that requiring him to surrender again would not be appropriate. Sibal also said Tejpal was prepared to go into custody if the Supreme Court did not grant relief.

Tarun Tejpal case

The case dates back to 2013, when a female journalist accused Tejpal of sexually assaulting her inside a hotel elevator during an event in Panaji.

Tejpal was arrested on November 30, 2013, and was later charged under provisions of the Indian Penal Code relating to rape, sexual harassment and wrongful confinement. He pleaded not guilty.

In May 2021, the Goa Sessions Court acquitted Tejpal, holding that the prosecution had failed to establish the case beyond reasonable doubt. The Goa government subsequently challenged that decision before the Bombay High Court.

The Bombay High Court later overturned the acquittal and convicted Tejpal, sentencing him to 10 years in prison.

The Goa government has also approached the Supreme Court seeking enhancement of the sentence.

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Rahul Gandhi, Kharge question caste census method, seek OBC list

Rahul Gandhi and Mallikarjun Kharge have questioned the proposed caste census method and demanded a separate OBC drop-down list.

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Rahul Gandhi Mallikarjun Kharge

Congress president Mallikarjun Kharge and Leader of the Opposition in the Lok Sabha Rahul Gandhi have written a joint letter to Prime Minister Narendra Modi, raising concerns over the proposed method for recording caste information in the 2027 Census.

The Congress leaders have particularly objected to the absence of a separate OBC column in the caste-related questionnaire. They argued that the current system may not accurately reflect the size of India’s Other Backward Classes (OBC) population.

Sharing the letter on social media, Mr Kharge said that conducting a caste census was not enough and that it also needed to be carried out correctly.

The two leaders described the proposed method of recording caste information as “misleading” and outlined what they said were its potential shortcomings.

Rahul Gandhi, Kharge raise concerns over caste names

According to the letter, under the proposed approach, the caste name provided by an individual would be recorded as given.

Rahul Gandhi and Mallikarjun Kharge argued that the same caste can be known by different names, sub-castes and linguistic variations across different parts of India. They said this could result in members of the same caste being recorded under different names.

The Congress leaders contended that this could fragment a single caste across a very large number of entries and make the resulting data difficult to use effectively.

They have therefore demanded that the government withdraw the existing caste census questionnaire and prepare a new one after consultations with political parties, experts and the public.

Congress seeks OBC drop-down list

Rahul Gandhi and Mallikarjun Kharge have suggested creating a drop-down list of castes to address the issue.

They said such a list could be prepared using existing government lists, including those for Socially and Educationally Backward Classes, along with data from the Anthropological Survey of India.

The Congress leaders also attached caste lists used in surveys conducted in Telangana and Bihar, saying the same methodology had been used in those exercises.

Their key demand is for a separate drop-down list for the OBC category in the caste-related questionnaire.

What is the caste question in the 2027 Census?

The Centre released a list of 40 questions for the 2027 Census around two weeks ago.

The tenth question relates to caste. According to the information cited by the Congress leaders, a drop-down list has been provided for Scheduled Castes and Scheduled Tribes, while an open-ended format has been adopted for other caste responses.

The Congress has demanded that a similar drop-down list be introduced for the OBC category.

Jairam Ramesh alleges Centre is delaying caste census

Congress General Secretary Jairam Ramesh, while releasing the letter at a press conference, alleged that the Centre did not have a genuine intention to conduct a caste census.

He described the current process as a “deception” and accused the government of deliberately attempting to put the caste census on the back burner. These are allegations made by the Congress and are presented as such.

The issue comes amid continued demands from the Congress for an accurate caste census.

A few days ago, Rahul Gandhi, while addressing an event organised by the Congress party’s OBC department, said that if the OBC community took to the streets like “Gen Z students”, the government would be forced to yield.

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