With rapid shift to hybrid work in the Information Technology (IT) sector thanks to COVID-19, the reliance on digital platforms and tools in organizations has increased. Despite the flexibility and work-life balance that hybrid is providing, hybrid is also introducing a reliance of technology systems by employees, resulting in digital exhaustion. Digital exhaustion is the state of psychological, emotional and cognitive overload we suffer as a consequence of constant digital activity, constant online interaction, constant connection and technological overload. This is an empirical study about the effects of digital exhaustion on employees' engagement in hybrid working conditions in the IT-company. It was a quantitative study with the primary data obtained from 250 respondents who were IT professionals by using structured survey tools. Analytical techniques of correlation analysis, regression modelling and descriptive statistics were used in the interpretation of the data collected. Digital exhaustion has a significant impact on employee engagement, workplace productivity, employee motivation, and job satisfaction, as evidenced by results. Also, the work-life imbalance and the overload of communication are intermediate factors that aggravate the symptoms of digital fatigue. To keep employees engaged in a hybrid working model, enterprises must establish measures to cope with digital well-being, implement communication models, and develop all-round support systems for employees' psychological needs. The study helps to add to the academic discussion and debate around digital fatigue, hybrid workforce management and leadership, while offering actionable recommendations for HR practitioners and organizational leadership.