TCS Layoffs: A Shockwave Through India's IT Sector

In a move that has sent shockwaves through India's IT sector, Tata Consultancy Services (TCS), the country's largest IT services firm, announced plans to lay off over 12,000 employees. This decision marks the biggest workforce reduction in the history of the Indian IT industry, highlighting the challenging market conditions and the company's strategic shift towards becoming a "Future-Ready" organization.

Who Will Be Impacted? The layoffs will primarily affect middle to senior level positions, as TCS aims to realign its workforce model to focus on new-tech areas, AI deployment, and next-gen infrastructure.

Support for Affected Employees

TCS has pledged comprehensive support for those impacted, including outplacement services, counseling, severance packages, and career transition support. The company emphasizes its commitment to making the process as compassionate as possible.

Industry Reactions and Concerns

Employee unions have criticized the layoffs, calling them illegal and urging affected workers to resist pressure to resign. Meanwhile, TCS CEO K Krithivasan clarified that the decision was not driven by AI efficiency gains but by skill mismatches and deployment feasibility.

Looking Ahead: The IT Sector's Challenging Environment

This unprecedented move by TCS reflects broader trends in the IT sector, including global economic uncertainties and the disruptive impact of AI technology. With over 80,000 tech jobs lost globally in 2025, the industry faces a period of significant transformation.