Indian software service providers may lay off around 2,500 recent recruits who failed screening tests.
The screening tests, which assess the new hires' ability to meet client project requirements, are becoming more stringent.
The downsizing is larger this year due to lower number of campus hires during the pandemic and could result from companies hiring more people than needed.
The IT industry may slow down its hiring pace for the rest of FY23, as most hiring targets have been met, and companies are grappling with high employee costs despite a decline in overall headcount.