AI layoffs in India: 66% of AI and ML workers expect job cuts within 3-6 months, engineers remain least worried

More than half of the professionals working in artificial intelligence (AI) and machine learning (ML) in India believe their teams could face layoffs or significant headcount reductions within the next three to six months. The findings highlight growing uncertainty in the technology workforce even as companies continue to expand their investments in AI.

According to Livemint, the survey, conducted by workplace community platform Blind, covered 1,552 India-based professionals in July 2026. It said 66% of AI and ML workers expect a layoff or significant reduction in their team’s headcount over the next three to six months.

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Sales and marketing workers are most concerned

The fear of job cuts is not limited to AI professionals. Sales and marketing recorded the highest layoff expectations at 68%, followed by AI and ML at 66% and product and design at 65%.

The findings indicate that working in AI does not necessarily provide employees with greater job security. Despite being among the fastest-growing areas of technology, AI-related roles are also being impacted by companies seeking to enhance productivity and manage workforce costs.

Engineers appear least worried

Interestingly, engineers reported significantly lower levels of concern than several other functions. Only 24% of engineers said a job cut was "very likely", making engineering the least concerned function in the survey.

Overall, however, 58% of engineers showed some level of at-risk sentiment, which was below the survey average. Data and analytics professionals were also relatively confident, with an at-risk sentiment of 51%, while four in 10 workers in the segment considered layoffs unlikely.

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The findings are notable because engineering and software development are among the areas expected to experience significant changes from generative AI and automation.

Salesforce, Oracle workers report higher risks

The survey also revealed a significant difference among companies. Workers at Salesforce reported the highest perceived risk at 81%, followed by Oracle at 80%, Uber at 77% and PayPal at 75%.

Indian SaaS companies appeared at the other end of the spectrum. The perceived risk was just 9% at Zoho and 44% at Freshworks, according to the survey.

Hiring freezes emerge as warning sign

Workers expecting job cuts are not necessarily waiting for formal layoff announcements. According to the survey, 27% identified hiring freezes as the strongest warning signal, while 24% pointed to budget or headcount-target reductions. Only 9% cited formal layoff announcements as the warning sign they were watching.

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India faces AI talent paradox

The findings come as demand for AI skills continues to rise in India. A separate Randstad Digital analysis of more than 35 million job postings found that India accounted for 20.5% of global AI technology job postings, second only to the US at 29%. AI-augmented developer roles globally have surged 597% since 2021, while demand for AI-skilled developers in India has risen by more than 660% by early 2026.