Bengaluru, known as the “Silicon Valley of India,” is facing one of its worst job crises in recent years.
In 2024, over 50,000 IT employees lost their jobs due to the growing adoption of artificial intelligence (AI) and automation. This wave of layoffs has not only affected tech professionals but also had a significant impact on the city’s real estate market and local businesses.
Impact on IT Professionals
The rise of AI and automation has changed the job market, especially for entry-level programmers, software testers, and lower-wage tech roles. Many of these positions have been replaced by AI systems that can code, debug, and optimize software more efficiently and at a lower cost.
Industry experts are urging immediate action, including:
- Upskilling programs to help displaced workers transition to more advanced roles.
- Government support to stabilize the real estate market.
- A balanced approach to AI adoption to prevent large-scale job losses.
Real Estate Market in Crisis
The layoffs have severely impacted Bengaluru’s real estate sector. Paying guest (PG) accommodations and rental apartments, once in high demand among junior IT employees, are now struggling with low occupancy rates. This has led to:
- Financial strain on landlords and property owners.
- Falling property values near tech hubs like the Outer Ring Road.
Ripple Effect on the Local Economy
Beyond IT and real estate, businesses that relied on tech professionals- such as restaurants, cafes, and retail stores- are also suffering. With reduced spending power among laid-off employees, multiple sectors in Bengaluru’s economy are feeling the pressure.
Experts emphasize the need for proactive measures to address this crisis before it worsens.
