Bengaluru, March 18: Bengaluru, also called the Silicon Valley of India, has been a hub for IT professionals, with the city being home to hundreds and thousands of workers working in the Information and Technology sector. That said, Bangalore is expected to witness one of the worst job crisis in its history, which will be fueled by large-scale layoffs in the IT industry and the rise of artificial intelligence (AI) and automation.
It is also reported that the job crisis in Karnataka’s capital city will affect the housing and real estate market. Bengaluru is home to thousands of IT workers who stay in cost-effective accommodations such as paying guest (PG) facilities or budget rental apartments. According to a report in Ascendants, over the next few weeks and months, Bengaluru is expected to witness high-scale retrenchment in the IT industry. Intel Layoffs Coming? New CEO Lip-Bu Tan May Announce Job Cuts To Streamline Operations Amid Financial Struggles and AI Competition, Say Reports.
Low-wage employees are the most vulnerable to the upcoming job cuts. Low-paying staff members living in affordable housing are likely to be the first to lose their jobs. The job crisis, which will be driven by mass layoffs, is being attributed to cost-cutting measures and companies’ shift to AI-driven automation. The report also claimed that the large-scale layoffs will have a strong impact on the paying guest (PG) market and establishments in and around Bengaluru.
If low-paid IT workers lose their jobs, then the demand for low-rent or cheap housing is also expected to drop significantly. This, in return, is likely to affect landlords and PG operators, who will face financial hardship. It is also said that entry-level programmers and software testers will be replaced by AI systems as companies and businesses look to streamline expenses. The job crisis is also expected to cause a downfall in occupancy rates and diminish property values. L&T Plans To Invest up to INR 3,600 Crore in New Data Centres in Bengaluru, Panvel and Mahape To Expand Its Capacity to 150 MW by 2027.
According to the report, the job crisis is being overlooked because people are underestimating the rapid advancement of AI and its ability to replace low-level tech workers. The report further mentions that AI and automation are transforming the tech sector, with AI tools performing several tasks, including coding, debugging, and software testing. AI and automation are also likely to affect sectors such as operations, finance, and chartered accountancy in the near future.
(The above story first appeared on Today News 24 on Mar 18, 2025 10:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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