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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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Mamata Banerjee holds crucial meeting with TMC MLAs amid party rebellion in West Bengal

Mamata Banerjee has called a crucial meeting of TMC MLAs amid growing dissent and claims by a rebel faction, with party unity under intense scrutiny.

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West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee is set to hold a crucial meeting with party legislators at her residence as the ruling party grapples with one of its most serious internal challenges in recent years.

The meeting comes at a time when the Trinamool Congress (TMC) is facing visible dissent from a section of its MLAs, raising concerns over party unity and legislative strength. The gathering is being closely watched as a test of whether Mamata Banerjee can bring disgruntled lawmakers back into the party fold.

Attendance under scrutiny after recent setbacks

The latest meeting assumes significance after an earlier gathering at Mamata Banerjee’s residence reportedly witnessed poor attendance, forcing the session to be called off. Reports suggested that only a fraction of the party’s legislators attended, triggering speculation about growing unrest within the organisation.

The internal turbulence has intensified following claims by a rebel faction that it enjoys the support of a substantial number of TMC legislators. The developments have sparked concerns about the party’s cohesion in the state assembly.

Leadership faces challenge from rebel camp

The rebellion has largely been linked to dissatisfaction among some legislators regarding the party’s leadership structure and decision-making process. While several reports indicate that the anger of dissenting MLAs is directed more towards sections of the party leadership than Mamata Banerjee herself, the crisis has nevertheless emerged as a major challenge for the TMC chief.

Recent developments, including the recognition of a rebel-backed opposition leader in the West Bengal Assembly and subsequent legal and political battles, have further highlighted divisions within the party.

Meeting expected to focus on party unity

Party leaders are expected to use the meeting to assess support within the legislative wing, discuss the ongoing political situation and explore ways to restore unity ahead of future political battles in the state.

Political observers believe the outcome of the meeting could provide a clearer picture of whether the Trinamool Congress can contain the rebellion or whether the internal crisis is likely to deepen further in the coming weeks.

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Cricket news

BCCI plans T20I leadership reset, Shreyas Iyer tipped for captaincy

India’s T20 team could be set for a leadership change, with reports linking Shreyas Iyer to the captaincy role and Tilak Varma to a larger responsibility.

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Suryakumar Yadav

India’s T20I setup could be heading towards a significant transition, with reports suggesting that the Board of Control for Cricket in India (BCCI) is considering a change in leadership ahead of upcoming international assignments. Shreyas Iyer has reportedly emerged as the leading candidate to take over the captaincy, while current skipper Suryakumar Yadav’s position in the squad is under scrutiny.

The reported move comes despite India’s successful T20 World Cup campaign under Suryakumar’s leadership. However, selectors are believed to be evaluating long-term plans and future leadership options as the team begins preparations for upcoming global events.

Shreyas Iyer emerges as leading candidate

According to reports, the selectors have identified Shreyas Iyer as a strong contender to guide India’s T20 side in the next phase. The middle-order batter has impressed with his leadership credentials in domestic and franchise cricket and is viewed as a dependable option for the future.

The proposed change is reportedly aimed at building a leadership group capable of carrying India through the next T20 World Cup cycle and other major tournaments.

Tilak Varma in line for bigger role

Young batter Tilak Varma is also understood to be part of the board’s long-term plans. Reports indicate that he is being considered for a senior leadership position, including the possibility of serving as vice-captain in the shortest format.

The management is believed to be keen on nurturing a younger core that can provide continuity over the coming years.

Uncertainty over Suryakumar Yadav’s place

While no official announcement has been made, reports suggest that Suryakumar Yadav could face a difficult period in the national setup. His recent batting performances have reportedly become a point of discussion among selectors despite his contributions as captain.

The uncertainty has intensified following recent squad-related developments, sparking speculation about his future role in India’s T20 plans.

Official confirmation awaited

As of now, the BCCI has not issued any formal statement regarding a captaincy change or squad decisions. The final call is expected to become clear when India’s squad for upcoming T20 assignments is announced.

Until then, the reports remain part of ongoing speculation surrounding India’s evolving T20 strategy and leadership structure.

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Ramalinga Reddy resigns from Karnataka cabinet over portfolio allocation dispute

Karnataka minister Ramalinga Reddy has resigned from the DK Shivakumar cabinet after expressing dissatisfaction with the portfolio allocated to him, creating an early challenge for the new government.

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Senior Congress leader and Karnataka minister Ramalinga Reddy has resigned from the state cabinet, just days after taking oath in the newly formed government led by Chief Minister D.K. Shivakumar. The resignation follows his reported dissatisfaction with the portfolio allotted to him.

According to reports, Reddy was assigned the Major and Medium Irrigation department during the cabinet portfolio distribution announced on Friday. However, the veteran leader was said to be seeking the Bengaluru Development portfolio, which eventually went to Krishna Byre Gowda.

The development comes at a sensitive time for the new Karnataka government, which was sworn in earlier this week after D.K. Shivakumar took charge as Chief Minister. Portfolio allocation had reportedly been delayed amid intense lobbying for several key departments, including those linked to Bengaluru’s administration and infrastructure.

Reddy cites repeated humiliation

In his resignation, Ramalinga Reddy reportedly expressed strong disappointment with the manner in which the portfolio allocation was handled. He is said to have felt sidelined despite his seniority in the party and flagged what he described as a reversal of earlier assurances.

Reports indicated that meetings were held involving Shivakumar, Reddy and other senior leaders as efforts were made to resolve the issue. However, the discussions did not result in a breakthrough, leading to Reddy’s decision to step down from the ministry.

Early challenge for Shivakumar government

Reddy’s resignation marks one of the first major political challenges for the newly formed Congress government in Karnataka. The cabinet formation process had already drawn attention due to competition for influential portfolios and ongoing efforts to balance various factions within the party.

It remains to be seen whether the Congress leadership will attempt to persuade Reddy to reconsider his decision or move ahead with a cabinet reshuffle to address the vacancy.

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