Indian IT and outsourcing companies Hinduja Global Services, Infosys and HCL Technologies have filed multiple WARN notices in the US states including Texas, Florida, and Pennsylvania during the first three months of 2026, according to an Economic Times report. The ET report suggests that these fillings suggest more layoffs in this short period than in all of 2025, underscoring how restructuring is accelerating at a fast pace. As per the ET report, industry experts believe that the rise of artificial intelligence is reshaping large transformation deals worth $1 billion or more. The onsite employees in the US often rebadged from client companies to service providers — are increasingly vulnerable as demand for redeployment shrinks. “This is a risk that companies take… How will you redeploy these employees in other projects? In the past, it was possible to redeploy, but now with the macro-environment and AI, there is not so much demand. So, you are seeing these notices,” Pareekh Jain, CEO of Pareekh Consulting and EIIR Trend told ET.
WARN notices explained
According to the ET report, under US law, companies with more than 100 employees must file a Worker Adjustment and Retraining Notification (WARN) at least 60 days before large layoffs or site closures. These filings, posted on state websites, provide a window into workforce reductions. However, the WARN fillings does necessarily means that the company is laying off employees. For instance, Infosys’ BPM arm filed a WARN notice on February this year covering 248 employees, most of whom were returning to client Vanguard as part of a restructured multi‑billion‑dollar deal. In such cases, WARN filings don’t always mean permanent layoffs but reflect contractual reshuffling.“They took back some US onsite workers and outsourced some more work in India and the Philippines to Infosys to meet the contract clauses but because there is no ‘rebadging’ filing, the only appropriate filing was a WARN notice,” a person aware of the matter told ET.The surge in WARN notices from Indian IT firms in early 2026 signals a new phase of restructuring driven by AI adoption and cost pressures. While not all filings translate into outright layoffs, the trend reflects a shifting balance in global IT services
