Layoffs are redefining the global tech landscape, with India's tech sector not immune to the trend.

Microsoft has placed around 500 employees in India on performance improvement plans (PIPs), while Oracle is set to cut roughly 3,000 jobs in the country as technology companies reorganise their workforces and redirect spending towards newer areas.

Experts note that performance improvement

Experts note that performance improvement plans need not translate into layoffs. Industry executives point out that PIPs can be part of normal performance management processes, rather than a precursor to job losses.

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"The share of employees globally on PIPs is a very small percentage," said a Microsoft spokesperson. "Employees who fall short of expectations may receive coaching, be placed on a PIP, or have the option of voluntary separation or termination."

However, market research firm EIIRTrend estimates that Oracle's latest job cuts could affect between 2,000 and 3,000 employees, with the layoffs expected to take effect from September 1.

"Typically, 1% to 2% of the workforce is what can be considered involuntary attrition or PIP-related attrition," said Gaurav Vasu, chief executive of market research firm UnearthInsight. "This can be due to a skill mismatch or performance issue."

Vasu notes that Oracle's restructuring is indicative of the changing skills and functions that technology companies are choosing to prioritise.

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"The restructuring is essentially about moving budgets from legacy sales skills to new-age skills," Vasu said. "In Oracle's case, it's a combination of PIPs and a shift towards new-age areas."

Experts say the traditional IT hiring model is changing, with Global Capability Centres (GCCs) becoming important employers for technology talent.

"HR professionals do not see GCCs as a direct, like-for-like replacement for conventional campus recruitment," said Vasu. "Their hiring is increasingly centred on specialised capabilities, including AI, data analytics, product development, cybersecurity and digital engineering."