There is a fear of a terrible job crisis in India’s technology capital Bengaluru. According to a report by Inshorts, there is a possibility of massive layoffs in the city’s IT sector, the main reason for which is the rapid spread of artificial intelligence (AI) and automation.

Thousands of IT workers in Bengaluru usually live in low-cost paying guest (PG) or rented apartments.

But this crisis is not limited to job losses, but it can also have a terrible impact on the housing sector, real estate investment and the local economy.

In the next few weeks, various IT companies in the city may face a wave of layoffs. Especially junior software developers and testers are most at risk of losing their jobs. AI-based systems are now rapidly developing software, fixing bugs and optimizing it at low cost, which is why companies are laying off these workers in order to reduce costs.

This is going to cause a major blow to the paying guest (PG) and rental market in Bengaluru. Most of the low-wage workers live in PGs or low-rent flats, so if they are laid off, many will be forced to leave the city. This will lead to a rental crisis, which will put financial pressure on homeowners and investors.

Real estate investors, especially in the areas adjacent to the Outer Ring Road (ORR) of Bengaluru, may be the most affected by this crisis. Because they planned to profit by renting houses near technology parks and corporate offices. But if workers start leaving the city due to job losses, the future of these investments will become uncertain.

According to experts, many workers are still not giving enough importance to the rapid development of AI and its impact on employment. However, in reality, AI is already doing the work of coding, debugging, and software testing with great efficiency, which is going to bring about major changes in the job market of the future.

This job crisis in Bengaluru is raising new questions not only about the city’s economy, but also about the future of the IT sector of the entire country.