The Tech Job Market is in Trouble (6-Year Low): Active Tech Jobs Drop 24% as 2026 Begins
By The Neo Nation Bureau | Careers & Tech Desk Date: January 3, 2026
Bengaluru: The “Great Resignation” is officially over; welcome to the “Great Stagnation.”
The new year has brought sobering news for India’s tech workforce. A fresh report by specialist staffing firm Xpheno reveals that the Indian technology sector has started 2026 on its back foot. Active tech job openings in the country have plummeted to 103,000 in January 2026-a sharp 24% drop compared to the same time last year.
This figure marks the second-lowest level of demand recorded since January 2021, confirming that the “funding winter” chill has frozen into a long-term structural correction.
The Data: A 60% Crash from the Peak
To understand the severity of the slump, one only needs to look back four years.
- January 2022 Peak: Active tech openings stood at over 260,000.
- January 2026 Reality: Openings have shrunk to just 103,000—a massive 60% crash from the post-pandemic boom.
The decline is visible across all experience levels. Entry-level openings are down 18%, while senior-level mandates have dropped by 22%, signaling that companies are neither hiring for future growth nor for leadership strategy.
The Divide: GCCs Hiring, IT Services Freezing
The report highlights a “K-shaped” recovery in the job market. While the mass recruiters are silent, niche players are still active.
1. The Losers: IT Services & Startups Traditional IT Services companies (the likes of TCS, Infosys, Wipro) have cut hiring mandates by 18% year-on-year, with active openings hovering around 41,000. Startups, still prioritizing profitability over scale, remain largely frozen.
2. The Winners: Global Capability Centres (GCCs) The only bright spot in the report is the GCC sector (offshore units of global giants like JPMorgan, Walmart, or Mercedes).
- Growth: GCC hiring is up 13% month-on-month and 7% year-on-year.
- Volume: They currently account for ~17,000 active openings.
- Shift: The demand here is not for generic coding, but for specialized roles in AI, Data Engineering, and Cybersecurity.
Geographic Shift: Tier-2 Rising
Interestingly, the “Tech Hubs” are bleeding the most. Major cities like Bengaluru, Hyderabad, and Delhi-NCR saw a combined 49% year-on-year decline in job openings.
In contrast, Tier-2 and Tier-3 cities registered a 30% rise in demand. This suggests a permanent shift where companies are moving lower-end coding roles to cheaper locations like Coimbatore, Bhubaneswar, and Indore to protect margins.
Why It Matters for You
For job seekers in 2026, the strategy must change.
- For Freshers: The era of “mass hiring” is paused. The competition for the remaining 14,000 entry-level slots will be fierce. Upskilling in niche domains (GenAI, Cloud) is no longer optional; it is a survival requirement.
- For Mid-Senior Techies: The “40% hike” switches are gone. Stability is the new currency. If you are in a traditional IT service role, this might be the time to upskill for a GCC transition rather than chasing a startup offer.