AWS CEO Matt Garman has rejected the idea of replacing junior staff with AI, calling it a long-term strategic risk and labeling the strategy as "one of the dumbest things" he has heard. Amazon is backing this stance by hiring over 11,000 interns and new graduates in 2026. Garman’s comments highlight a structural shift in the Indian IT services sector, where companies like TCS, Infosys, and Wipro have relied on the "pyramid model" of hiring fresh graduates for routine work. The rise of generative AI is disrupting this foundation, with many Indian IT firms moving toward leaner, "diamond-shaped" teams of experienced professionals, leading to a noticeable decline in mass campus hiring. For investors, the debate between "hiring for long-term health" and "cutting for short-term efficiency" is critical, as companies that dismantle junior hiring may face a future talent shortage. Investors are monitoring how Indian IT firms balance these pressures, with data from recent quarters showing a trend toward caution.