ClearTax Lays Off 25% Workforce Amid Restructuring — IIT Graduates Among Affected

As part of a significant reorganisation, ClearTax has laid off 25% of its workforce, with new hires being among the most affected. Two months after being employed in June, the software developers were let go on August 1st, according to multiple “OpenToWork” and “LaidOff” profiles on LinkedIn.

IIT Graduates Laid Off Within 60 Days

Anoop Singh, a 2025 graduate of IIT Guwahati and one of the laid-off workers, posted something on LinkedIn that he "never thought he would have to." Singh, a software engineer who started working for the company in June of this year, said that it felt "profoundly unfair", in part because he was not given a "real chance to prove his long-term value".

ClearTax’s Official Response to Layoffs

A ClearTax representative responded by stating that the company recently implemented a more extensive strategic organisational restructure that affected approximately 16% of its personnel, including a few early-career individuals.

This was a difficult choice, and ClearTax sincerely appreciates the contributions of all those impacted. Through outreach to industry partners, the corporation also announced that it had extended improved severance payouts, maintained health insurance, and actively provided outplacement support.

The layoffs are described in Clear's statement as a strategic decision to "reshape teams to enhance agility and future-readiness", but LinkedIn profiles from impacted employees show sudden departures, some within 60 days of joining the company.

ClearTax’s Growth and Expansion

Originally founded as ClearTax, the company changed its name to Clear in 2021 to better represent its expanded product line, which now includes corporate analytics, financial automation, and compliance solutions.

Serving CFOs and finance teams, Clear has established itself as a growth-stage fintech company with operations in India, the United Arab Emirates, Singapore, France, Belgium, and other international countries.

Concerns About Early-Career Hiring Practices

The layoffs raise concerns about internal recalibrations notwithstanding recent expansion. The scope and suddenness of the layoffs, particularly of campus hires, have sparked conversations about hiring accountability and transparency in the tech industry, even if Clear's letter to People Matters emphasised that the company is still "financially strong".

IT Graduates Living with a Nightmare

A wider issue in India's IT employment market is brought to light by the incident as well: the risk early-career professionals confront in the face of shifting corporate goals.

A lot of the impacted IIT grads are currently looking for new jobs, but many are wary because of the experience. Concerns have been voiced by some in the academic and human resources communities regarding how businesses handle the welfare and expectations of new hires, especially those who are hired through stringent campus placement procedures.

The obligation to engage empathetically and communicate clearly remains crucial when businesses reorganise to accommodate future demands, particularly when young professionals' careers and confidence are at stake.