TCS to Cut 12,000+ Jobs: A Major Shift in the IT Industry
In a shocking development, Tata Consultancy Services (TCS), India’s largest IT services company, has announced its biggest layoff ever. The company will let go of 12,261 employees, which accounts for about 2% of its global workforce. This move comes amid the growing impact of Artificial Intelligence (AI) and slowing business demand.
Why is TCS laying off employees?
TCS, which has more than 6.1 lakh employees globally, is facing AI-led disruptions and uncertain global markets. The company is making this move as part of a broader plan to become a “future-ready organization.”
The layoffs will mostly affect mid-level and senior executives — people who have been in the company for many years. This suggests a clear shift towards AI, automation, and cost efficiency.
What is TCS saying?
TCS CEO K Krithivasan said in an internal email:
“These changes are necessary for our growth and evolution. We understand the impact on our colleagues, and we thank them for their service. We are committed to supporting them through this transition.”
This shows that while the decision is tough, TCS is positioning itself to stay competitive in the AI era.
What does this mean for the IT industry?
This is not just a TCS story. Experts believe this could be a signal of a wider shift in the IT services industry. Clients are now asking for 20–30% price reductions, and companies like TCS are being forced to rethink their manpower-heavy models.
Phil Fersht, CEO of HfS Research, commented:
“AI is eating into the people-heavy services model. Companies must rebalance their workforce to protect margins and stay competitive.”
Is this trend limited to TCS?
No. Other Tata Group companies like Tata Steel and Tata Motors have also trimmed their workforces in the past to cut costs and improve profitability. For example, Tata Steel cut 3,000 jobs in Europe in 2019.
Final Thoughts
The TCS layoff is a wake-up call for the IT sector. As AI continues to change how businesses operate, even the biggest companies are restructuring and letting go of experienced talent to adapt to the new world.
While it’s a tough time for those affected, it also highlights the need for continuous upskilling and staying updated with the latest technologies like AI and automation.
Reference from:- https://timesofindia.indiatimes.com/city/bengaluru/tata-consultancy-services-to-axe-12000-jobs-it-firms-biggest-layoff-ever/articleshow/122939485.cms