Bengaluru IT job crisis: 50,000 Laid Off in 2024 as real estate takes a hit!

Bengaluru, India’s leading IT hub, is experiencing a major employment crisis, with over 50,000 tech workers losing their jobs in 2024. The widespread layoffs are attributed to the rapid adoption of artificial intelligence (AI) and automation, which have replaced many entry-level roles.

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Companies are increasingly relying on AI for coding, debugging, and software optimization, reducing the need for junior programmers and software testers. The shift towards automation has significantly altered workforce requirements, leading to mass job cuts across the sector.

The impact of these layoffs extends beyond the IT industry, heavily affecting Bengaluru’s real estate market. Paying guest (PG) accommodations and budget rental apartments, typically occupied by young IT professionals, are seeing a sharp drop in demand. Many landlords who had invested in properties expecting stable rental income are now facing financial strain.

Areas around the Outer Ring Road (ORR), known for housing major tech parks and corporate offices, are witnessing rising vacancy rates and declining property values. Investors in these regions are struggling as the rental market takes a downturn.

Experts suggest that the speed of AI’s growth was underestimated, leading to an unanticipated disruption in the job market. As Bengaluru grapples with these challenges, urgent measures are needed to mitigate the economic fallout and stabilize both employment and real estate sectors.