Bengaluru is witnessing a major employment crisis as large-scale layoffs in the IT sector continue to rise. The widespread adoption of artificial intelligence (AI) and automation is replacing lower-wage tech jobs, impacting thousands of professionals residing in the city.

The layoffs extend beyond individual employees, affecting Bengaluru’s rental housing market, real estate investments, and local businesses. Industry experts warn of significant economic disruptions as demand for affordable accommodations declines.

According to industry reports, Bengaluru’s IT industry will see an increase in job losses over the next few months. Entry-level employees, particularly programmers and software testers, are among the most vulnerable as companies cut costs and implement AI-driven solutions for coding and debugging.

Businesses are prioritizing efficiency, leading to the replacement of human workers with AI tools capable of handling technical tasks at lower costs. The transition is reshaping employment dynamics in the city, leaving many workers struggling to secure new opportunities.

The wave of layoffs is already affecting Bengaluru’s rental market. Paying guest (PG) accommodations, commonly preferred by junior IT employees, are experiencing a decline in occupancy. Landlords and property owners who relied on steady demand from IT professionals now face financial uncertainty.

Real estate investors, particularly in areas around Outer Ring Road (ORR) known for hosting tech parks, are witnessing reduced demand for rental properties. Many who invested heavily in rental housing now confront falling property values and prolonged vacancies, challenging the once-thriving real estate sector.