‘EMIs, kids, elderly parents’: Shantanu Deshpande has a layoff warning for this age category employee

A growing wave of layoffs is unsettling India’s white-collar workforce—but those most affected aren’t freshers or senior executives. It's the professionals in their 40s who are being hit the hardest.

This is no passing trend. “It’s a global phenomenon,” wrote Shantanu Deshpande, founder and CEO of Bombay Shaving Company, in a widely shared LinkedIn post. He explained that people in their 40s are often the “highest paid” in their companies, and thus are the first to be cut when budgets shrink. “They have children going to college, money to send to parents, EMIs to cover — and not a lot of savings. It’s very, very worrying,” he said.

The timing couldn’t be worse. These workers are often at the peak of their careers—and their financial responsibilities.

High salaries, higher risk

The situation is unfolding across sectors, particularly in startups and technology firms where performance metrics shift quickly and runway funding pressures loom large.

“The most vulnerable are the ones between 40 to 45, and they are the first ones to receive the axe,” a LinkedIn user commented, echoing Deshpande’s concerns. The user described a common story—an experienced employee leaves a legacy firm for a promising, high-paying role in a fast-growing startup. Two or three years in, the company tightens spending or pivots, and the role disappears overnight. Severance? Sometimes none. Gardening leave? Unlikely.

These professionals are then left in limbo. Many find themselves overqualified for junior roles, too expensive for mid-level ones, and lacking the specialised, modern skills needed for newer positions. It's a difficult gap to bridge.

The “40-40” problem

Behind this growing crisis lies what recruiters call the “40-40 problem.” If a jobseeker is over 40 years old or expects a salary of more than ₹40 lakh, they’re often filtered out—unless they possess rare or highly specialised expertise. The reasons are varied: age bias, rapid shifts in industry skill requirements, and company preference for younger, cheaper, more “mouldable” hires.

For professionals who built their careers on legacy systems, the transition hasn’t been easy. As industries lean harder into artificial intelligence, automation, and cloud computing, a growing number are being outpaced. Even with experience and leadership credentials, many are struggling to stay relevant in job markets that prioritise agility and niche tech skills.

The emotional cost of job loss

Beyond the spreadsheets and career gaps lies another casualty—mental health. According to a 2025 survey by the World Health Organization, 40% of laid-off professionals experience severe stress. The impact is particularly stark for middle-aged men, many of whom carry the weight of supporting families, paying off loans, and planning for retirement. Losing a job at this stage hits harder than it does in one’s twenties.

There’s also a social dimension. In Indian households, unemployment at 40 is rarely just a personal setback—it can feel like a collective crisis.

A changing landscape demands preparation

Deshpande didn’t stop at diagnosis—he offered blunt advice for professionals trying to future-proof their careers.

“Start upskilling in AI, save more, and build an entrepreneurial mindset,” he wrote.

The advice may sound simple, but implementing it is anything but. Upskilling takes time. Financial planning feels abstract when EMIs and tuition fees are pressing. And not everyone has the appetite—or safety net—to take the entrepreneurial leap.

Still, the message is clear: in a changing job market, those who survive will be the ones who adapt.

This isn’t just a corporate restructuring issue. It’s a broader social and economic challenge—one that deserves more attention, better support systems, and honest conversations about age, ambition, and resilience.