AI Impact on Jobs in Hyderabad: IT Hiring Drops Sharply

In Hyderabad, the growing use of artificial intelligence is beginning to reshape the employment landscape, particularly in the IT sector. Entry-level opportunities and campus placements have seen a noticeable decline, raising concerns among fresh graduates and job seekers.

Industry experts point out that campus recruitment has dropped significantly over the past year, with hiring levels falling to less than one-third compared to previous years. As companies increasingly rely on automation and AI-driven systems, many routine roles are being phased out, putting pressure not only on new hiring but also on existing positions.

Shift Towards AI-Led Operations

Major technology firms are rapidly integrating AI into their workflows, reducing the need for traditional roles. Startups are also following a similar path, prioritising AI-focused operations instead of expanding their workforce. In response to these developments, the Telangana government is reportedly exploring support measures for employees impacted by these changes, in collaboration with IT companies.

At the same time, global uncertainties such as economic slowdown and geopolitical tensions have influenced workplace trends. A growing number of professionals are adopting what is now known as “job hugging” — choosing to remain in their current roles rather than seeking new opportunities.

Employees Choose Stability Over Growth

Across sectors like IT, finance, and media, employees are increasingly valuing job security over salary hikes or career advancement. This cautious approach has led to reduced job mobility, which may affect long-term career progression.

Recent surveys indicate that nearly 71 percent of employees prefer to stay in their current roles. The number of professionals practising job hugging has also increased significantly, rising from 45 percent in 2025 to 57 percent in 2026. Additionally, about 70 percent of workers believe AI could have a direct impact on their jobs.

Fewer Jobs, More Competition

The slowdown in hiring is becoming more visible as layoffs and automation continue to rise globally. In 2025 alone, more than 76,000 jobs were cut by major tech companies worldwide. In India, several startups have shut down, while others have quietly reduced staff, adding to job market uncertainty.

Every year, nearly 9 lakh engineering graduates enter the job market, but only around 3 lakh new opportunities are created. This imbalance has intensified competition, with many candidates willing to accept lower salaries, further affecting job stability for existing employees.

An employee from Infosys shared that rapid advancements in AI technologies have pushed professionals to upgrade their skills continuously. However, limited hiring and uncertainty in the job market have made many hesitant to switch roles despite available opportunities.

Media Industry Also Feeling the Shift

The effects of AI are not limited to IT alone. The media sector is also undergoing significant transformation, with companies adopting AI tools for tasks such as news reading, script generation, and translation.

As a result, the demand for specialised roles, particularly in translation, has declined. Many organisations are now training their existing workforce to handle multiple responsibilities, often at reduced costs.

Although new digital platforms are emerging, professionals remain cautious. Frequent shutdowns of such platforms have made employees wary, leading many to stay in their current jobs even if it means compromising on salary growth.

Conclusion

The rise of artificial intelligence is clearly transforming job dynamics in Hyderabad and beyond. While it brings efficiency and innovation, it also poses challenges for employment, especially for freshers and mid-level professionals. In this evolving landscape, upskilling and adaptability are becoming essential for long-term career stability.

Also read: Bank Holidays in May 2026: Full RBI List and Dates