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The year 2025 was marked by numerous workplace controversies, ranging from record CEO exits and governance lapses to revelations of toxic culture and mass layoffs from established companies as well as startups.
While CEO turnover saw an increase, an increase in ‘silent layoffs’ increased windfalls for mid-level employees and support staff. Comments supporting higher executive pay as well as a 70 to 90-hour work week during the layoffs became the subject of public scrutiny.
The focus on mental health intensified in 2025, following tragic events such as the death of EY employee Anna Sebastian in 2024. Mental health and work-life balance were emphasized by Gen Z employees, who are rapidly forming a large part of the Indian workforce.
Here are the major workplace controversies that defined 2025:
IndusInd Bank’s accounting scam and leadership exit
The biggest corporate flashpoint this year came from the financial sector. In March 2025, IndusInd Bank revealed major accounting discrepancies related to the valuation of foreign currency derivatives. The revelation wiped out almost a quarter of the bank’s market value in a single trading session. The fallout was swift, with the bank’s CEO and other senior executives resigning, taking “moral responsibility” for the mistakes. Regulatory scrutiny intensified and SEBI barred the former executives from trading as allegations of insider activity emerged before the revelations. The episode raised questions about governance standards and internal controls at one of India’s largest private lenders.
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12,000 layoffs at TCS spark debate on transparency and fairness
India’s largest IT services company faced a big crisis this year after it announced layoffs affecting about 12,000 employees. The move was mooted as part of an AI-led restructuring that triggered a widespread debate over the fairness of “forced exits” and mid-career layoffs at India’s largest private sector employer. Employee groups alleged that many of them were induced to resign rather than formally fired. The incident sparked a parallel controversy about senior-level compensation as critics questioned whether higher executive pay was defensible amid massive job cuts. The episode reignited the discussion on whether India needs a more transparent and sympathetic retrenchment framework.
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Startups cut jobs as funding tightens
India’s once buoyant startup ecosystem also sees massive job losses in 2025. Many companies in AI, fintech, gaming and logistics cut hundreds of roles as they move towards profitability.
The loss of over 6,700 startup jobs was recorded this year, including conversational AI unicorn Gossip laying off 500 employees due to funding issues and Ola Electric laying off 1,000 employees due to automation. Founders were criticized for sloppy communications, unclear severance structures, and a growing gap between employer branding and on-ground practices.
70-90 hour workweek debate
In 2024, after the 70-hour work week advocated by Infosys founder Narayana Murthy, L&T Chairman SN Subramanian A nationwide debate began as early as 2025, suggesting employees should be prepared to work up to 90 hours a week, even on Sundays. His comments, “If I could make you work on Sunday, I’d be happier,” were widely criticized as dismissive of work-life balance. When questioned about the reasoning, he reportedly asked, “What do you do sitting at home? How long can you stare at your wife?” And urged employees to “reach office and start working”.
The backlash was immediate, with employees and labor groups calling the comments emblematic of toxic expectations across corporate India. GenZ and Millennial professionals used this moment to highlight the long hours, late-night communications and unrealistic demands that are common across all sectors.
silent firing trend
Silent firing emerged as one of the most disturbing workplace trends in 2025, with multiple reports revealing how companies rapidly laid off employees without issuing formal termination notices.
Organizations resorted to silent firing by sidelining employees, minimizing responsibilities, excluding them from key communication channels, delaying appraisals, or denying development opportunities until the employee was forced to resign – a strategy that enabled companies to quietly cut headcount, avoiding severance obligations and the public scrutiny typically associated with layoffs.
This phenomenon was particularly visible in the tech sector, where The Times of India reported an increase in silent layoffs, marked by subtle but deliberate signals, such as longer bench time, sudden changes in reporting structures, unrealistic performance expectations and withdrawal of meaningful work. The Economic Times further highlighted that mid-career professionals were particularly vulnerable, as companies looked to cut costs amid AI-led restructuring. These reports underline a clear shift in India’s workforce practices from open layoffs to more opaque, indirect methods of workforce reduction.
CEO turnover reaches highest level in several years
Corporate India experienced an unusually high pace of leadership changes in 2025, with data showing a sharp rise in CEO exits among major listed firms. According to a Spencer Stuart study covering BSE 200 companies, 16 CEOs stepped down in the first half of 2025, a rate not seen since the pandemic-era turmoil in 2020. Nearly 40% of those changes occurred within three years, underscoring boards’ growing desire to reach the top as strategic pressures increase. Additionally, comprehensive India Inc data shows that 141 CEOs and managing directors of NSE-listed companies resigned in FY 2024-25, up from 119 the previous year, reflecting high churn in the top sectors of Indian business.
Overall, these flashpoints make 2025 one of the most disruptive years for India’s workplace ecosystem. Governance lapses, mass layoffs, an increase in silent firings, and debates over excessive work hours highlight the growing tension between corporate expectations and employee well-being. At the same time, unprecedented CEO churn signaled a shift in priorities in the boardroom as companies grappled with volatility and pressure to course-correct.
The year also saw a shift in how employees, particularly GenZ and younger millennials, are engaging with workplace norms, calling out toxic practices and demanding greater transparency, balance and accountability. As these voices grow louder, the events of 2025 may force Indian industry to rethink how it hires, manages and retains talent, making this year a turning point in the country’s evolving work culture.
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