Notes about TCS job cuts
TCS plans to reduce its workforce by 2%, which means about 12,261 employees will lose their jobs. The majority of those being laid off are at the middle and senior levels.
Tata consultancy services (TCS), which is the biggest IT services company in India, has announced that it will be letting go of around 12,261 employees this year. This number makes up about 2% of its total workforce across the world. The decision is part of the company’s plan to restructure its teams and adjust to changing business needs. While this move may help the company become more efficient and reduce costs, it will mainly affect employees at the middle and senior levels. TCS has said that these changes are necessary due to slower demand for some of its services and the growing use of automation and new technologies. The company also plans to focus more on hiring fresh talent and training them in new digital skills to stay competitive in the global IT industry.
What TCS CEO say about,”TCS job cuts
In an interview with MoneyControl, TCS CEO K Krithivasan called the decision to cut jobs a “difficult but necessary step.” He made it clear that the layoffs were not because of artificial intelligence (AI).
“This is not happening because AI has suddenly improved productivity by 20%,” Krithivasan said.
He explained that the main reason for the job cuts was a mismatch in skills or situations where the company couldn’t find suitable roles for some employees
Tcs
Krithivasan told Moneycontrol that the layoffs would take place gradually throughout the financial year 2025–26 and wouldn’t be limited to any specific country or business area. “We will carry this out in a very compassionate manner,” he assured.
However, in the official announcement, the company mentioned that the job cuts — mostly affecting senior and mid-level staff — are partly due to the growing role of artificial intelligence (AI).
TCS is working towards becoming a company that’s ready for the future. To do this, it is taking steps in many areas—like investing in new technologies, expanding into new markets, using AI more widely for its clients and its own operations, building stronger partnerships, improving its infrastructure, and updating the way its teams are organized and work.
“As part of our ongoing efforts to reskill and redeploy talent, several initiatives are already in progress. However, during this process, we will also have to let go of some employees whose roles cannot be realigned within the company. This step will affect around 2% of our global workforce, mostly those in mid- and senior-level positions, over the coming year.”
ChatGPT impact on TCS job cuts
According to Hindustan Times, the recent job cuts at TCS come around two and a half years after the launch of ChatGPT, which raised concerns about the future of India’s IT companies that rely heavily on large teams of software developers. Just recently, HCL Technologies, India’s third-largest IT company, also hinted at possible layoffs as automation starts to take over work typically done by fresh graduates.
Phil Fersht, CEO of HFS Research, explained that AI is starting to affect the traditional, people-heavy business model used by big IT service firms. Companies like TCS are now having to adjust their workforce to protect profits and stay competitive, especially as clients are asking for price cuts of 20–30% on projects.
Fersht added that this shift is likely to continue for about a year. During this time, top IT firms will focus on training younger employees to use AI tools. At the same time, they will have to let go of those who may find it difficult to adapt to a new AI-driven way of working, which he describes as “services-as-software.”