In a major shake-up that signals a growing shift in the global tech industry, Tata Consultancy Services (TCS)—India’s largest IT services firm—is preparing to lay off approximately 12,261 employees, accounting for nearly 2% of its total global workforce.
📉 Why Is This Happening?
The decision is primarily driven by rapid advancements in Artificial Intelligence (AI) and automation, which have significantly reduced the need for human intervention in several business process tasks, especially in middle and senior management roles.
TCS CEO K. Krithivasan, in a press briefing, emphasized the need for leaner and AI-augmented teams:
“The role of middle managers is shrinking. A very senior person may not be needed just to forward emails and set up calls. AI is now handling most of these tasks efficiently.”
This marks one of the largest single-phase layoffs in the Indian IT sector in the last decade.
Breakdown of the Layoffs:
- Total employees being laid off: 12,261
- Departments impacted most: Project management, operations, quality assurance, HR, and non-billable roles.
- Experience bracket: Most affected employees have 10+ years of experience.
- Regions: Though global in scope, India-based teams will see the highest cuts, particularly in Pune, Bengaluru, Hyderabad, and Chennai.
The AI Impact:
TCS has aggressively deployed AI-based tools to handle tasks like:
- Client support (chatbots & voice bots)
- Project coordination (automated scheduling, updates)
- Quality assurance (automated testing)
- HR operations (resume screening, performance monitoring)
AI platforms like ignio™, TCS Neural Manufacturing, and Quartz™ have reduced demand for many human-driven functions.
“This is not just a cost-cutting move, it’s a restructuring towards a future-ready digital workforce,” said a TCS insider.
💬 Reactions from Industry & Employees:
Industry experts believe this is just the beginning:
“The rise of GenAI and enterprise automation is rendering many traditional roles redundant. TCS is simply the first large Indian player to admit it publicly,” said IT analyst Rajiv Bansal.
However, employee unions and tech forums have condemned the decision, calling it “anti-worker” and “sudden.” Social media is abuzz with stories of employees being let go with only a 30-day notice.
🛠️ What’s Next for Affected Employees?
TCS has announced:
- Outplacement assistance via partner platforms
- Access to upskilling portals like TCS iON and Coursera
- Limited internal re-deployment options
However, many fear the market is already saturated, especially for mid-level professionals who now face competition from younger, AI-savvy talent.
Broader Trend in Tech Industry
- Infosys, Wipro, and Accenture are also reported to be reevaluating their middle management.
- A “flattened workforce” is becoming the norm.
- 2025 is being dubbed the “Year of AI Displacement” in tech
