English हिन्दी
Connect with us

India News

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.

Published

on

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

India News

BJP targets Kejriwal over Sheesh Mahal 2 claim, AAP calls images fake as Raghav Chadha weighs in

BJP alleges Arvind Kejriwal’s new residence is a lavish “Sheesh Mahal 2”, while AAP denies the claims and calls the images fake, escalating political tensions.

Published

on

Arvind Kejriwal

A fresh political confrontation has erupted between the Bharatiya Janata Party and the Aam Aadmi Party over allegations surrounding a newly allotted residence to Arvind Kejriwal, with the BJP dubbing it “Sheesh Mahal 2”.

The controversy began after Parvesh Verma released images and a layout of the bungalow, claiming that high-end amenities in the property were funded using “private money”. The BJP alleged that the residence reflects an extravagant lifestyle, reviving earlier accusations linked to the “Sheesh Mahal” controversy.

The remarks came soon after Kejriwal moved into the government-allotted accommodation in Delhi’s Lodhi Estate, adding political heat to an already tense atmosphere.

In response, AAP leaders rejected the allegations outright, asserting that the images circulated by BJP leaders were not authentic. Party representatives claimed the visuals were sourced from online platforms and do not represent the actual residence.

The party also accused the BJP of spreading misinformation to target Kejriwal politically and damage his public image.

Political tensions rise amid recent defections

The row comes at a time when tensions between the two parties are already high following recent political developments, including the exit of senior leaders from AAP.

Raghav Chadha, who recently shifted political alignment, also weighed in on the issue, adding another dimension to the ongoing confrontation. His remarks are seen as part of a broader political attack on AAP amid internal challenges and shifting loyalties.

The developments have intensified the war of words between the BJP and AAP, with both sides trading allegations over governance, transparency, and political intent.

Ongoing battle of narratives

While the BJP continues to question the nature of the residence and its alleged expenses, AAP has maintained that the claims are baseless and politically motivated.

With both parties standing firm on their positions, the “Sheesh Mahal 2” issue is likely to remain a key flashpoint in Delhi’s political landscape in the coming days.

Continue Reading

India News

Karnataka cabinet clears 15% internal reservation for Scheduled Castes, recruitment to begin soon

Karnataka approves internal reservation within SC quota, paving way for jobs

Published

on

The Karnataka cabinet, led by Chief Minister Siddaramaiah, has approved an internal reservation framework for Scheduled Castes (SCs) within the existing 15% quota, a move expected to address long-standing demands and restart stalled government recruitment.

The decision was taken during a special cabinet meeting and introduces a revised formula to distribute the quota among different SC sub-groups.

How the quota will be divided

Under the new structure, the 15% reservation for Scheduled Castes will be split into three categories:

  • 5.25% for “left-hand” SC communities
  • 5.25% for “right-hand” SC communities
  • 4.5% for other SC groups, including nomadic communities

The formula is based on proportional representation and aims to ensure equitable distribution of benefits among various sub-castes.

Recruitment to resume after long delay

The cabinet’s approval is expected to immediately unlock recruitment for thousands of government positions that had been on hold due to the reservation issue.

Officials indicated that recruitment notifications will now be issued, potentially opening up more than 50,000 vacancies across departments.

Long-pending demand addressed

The move comes after decades of demands from different SC communities seeking internal classification within the quota system. The government described the decision as a step toward social justice and balanced representation.

The issue had remained unresolved for years due to legal and administrative complexities, including concerns over exceeding the Supreme Court-mandated 50% reservation cap.

Political and social significance

The decision carries both administrative and political importance, as it addresses a sensitive issue affecting multiple communities within the Scheduled Castes. It also comes at a time when reservation policies continue to be a major subject of debate across states.

While the government has presented the move as a corrective step, it is likely to trigger reactions from various stakeholders, including opposition parties and community groups.

Continue Reading

India News

Amit Shah claims Mamata leaving, BJP coming after high turnout in Bengal polls

Amit Shah says high turnout in Bengal polls signals shift from Mamata Banerjee’s rule, predicts BJP surge.

Published

on

Union Home Minister Amit Shah on Friday expressed strong confidence in the Bharatiya Janata Party’s prospects in the ongoing West Bengal Assembly elections, asserting that the political mood in the state signals a shift away from Chief Minister Mamata Banerjee.

Speaking after the first phase of polling, Shah claimed that the high voter turnout indicates a desire for change, stating that “Mamata is leaving and BJP is coming.”

The first phase of elections recorded a notably high turnout across several constituencies, which Shah said reflects growing public support for the BJP and dissatisfaction with the current administration.

BJP predicts strong performance

The senior BJP leader went a step further, projecting a significant electoral gain for his party. He suggested that feedback from party workers and internal assessments indicate that the BJP could secure a large share of the seats contested in the first phase.

Shah linked the voter turnout to what he described as a broader shift in public sentiment, claiming that people in the state are moving from “fear to trust” and are ready for political change.

Intensifying political battle

The remarks come amid a high-pitched political contest between the BJP and the ruling Trinamool Congress, led by Mamata Banerjee. The ongoing election has seen sharp exchanges between leaders from both sides, with each camp projecting confidence in forming the next government.

Shah’s comments also follow recent statements by Banerjee targeting the BJP at the national level, highlighting the broader political stakes surrounding the Bengal elections.

As polling progresses in multiple phases, the results are expected to play a crucial role in shaping the political landscape of the state.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com