Bengaluru, India’s premier technology hub, is facing an unprecedented job crisis as mass layoffs sweep the IT sector. A combination of cost-cutting measures and the growing adoption of artificial intelligence (AI) and automation is driving thousands of professionals out of work, reports Inshorts.
This downturn is not limited to tech employees—it threatens the city’s housing market, real estate investments, and local businesses, raising concerns about Bengaluru’s economic future.
In the coming months, the IT industry is expected to see widespread layoffs, particularly affecting entry-level programmers and software testers. These professionals, who typically rely on budget housing options like paying guest (PG) accommodations and low-cost rentals, are among the first to be replaced by AI-driven systems.
The impact on Bengaluru’s rental market is already evident. PG facilities, once bustling with junior IT workers, are seeing dwindling demand. Many landlords and property investors, especially in tech hubs like the Outer Ring Road (ORR), now face declining occupancy rates and falling property values.
For years, investors poured crores into Bengaluru’s booming rental market, banking on steady IT sector growth. However, the rapid integration of AI into software development and testing has accelerated job losses, exposing vulnerabilities in the city’s real estate-driven economy.
Many professionals still underestimate AI’s disruptive power. Yet, automation is no longer a future concern—it’s transforming industries today.
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