1. Who Is Being Let Go?
The layoffs are focused on middle to senior-level roles. TCS says it’s undergoing a transformation to become a “Future-Ready” company — investing in next-gen technologies, expanding global reach, and aligning its workforce accordingly. Those unable to be redeployed or reskilled are being let go.
2. CEO Calls It a ‘Difficult Decision’
TCS CEO K Krithivasan called the decision “difficult but necessary” in an interview with Moneycontrol. He emphasized that the move is about long-term restructuring and building resilience rather than cost-cutting alone.
3. Support for Affected Employees
TCS claims it is offering impacted employees severance pay, outplacement services, extended health insurance, counselling, and career transition support. The company says it’s committed to handling the situation with compassion.
4. Strong Backlash from Employee Unions
Employee unions have denounced the layoffs, calling them unjustified during stable business conditions. The Karnataka State IT/ITeS Employees Union and Forum for IT Employees (FITE) have urged workers not to resign under pressure and are calling for legal action if necessary.
5. AI Not the Culprit, Says TCS
Despite industry speculation, Krithivasan denied that AI-driven efficiency is behind the job cuts. “It’s not about AI. It’s about roles we couldn’t deploy due to skill mismatches,” he clarified. This indicates a deeper issue of upskilling and changing client demands.
6. No Impact on Projects
TCS has assured clients and stakeholders that the layoffs will not affect ongoing projects. The company is reportedly phasing the layoffs over time to maintain smooth service delivery.
7. TCS’s Largest Layoff in History
Previously, TCS had laid off around 3,000 employees in 2015 — then considered significant. But this time, the company is letting go of over 12,000 workers, making it not just TCS’s biggest, but the largest layoff ever in Indian IT history.
8. No Clarity on Next Steps
So far, TCS hasn’t revealed how exactly the 2% figure was calculated, nor if more layoffs are planned. This lack of transparency is fueling speculation and uncertainty across the sector.
9. Indian IT Faces Global Headwinds
The broader IT industry is navigating a tough environment marked by shifting client expectations, tighter margins, and growing pressure from global economic challenges. Indian firms are now facing workforce rationalizations once common only among Western tech giants.
10. Global Layoffs Mirror the Trend
As per Layoffs.fyi, over 80,000 tech workers have been laid off globally across 169 companies in 2025 alone. In 2024, nearly 150,000 jobs were lost. Major players like Microsoft have trimmed over 15,000 jobs this year — showing that India’s IT shake-up is part of a much larger global shift.
Final Thoughts: A Sign of Things to Come?
TCS’s decision marks a turning point in Indian IT. The industry — once celebrated for its job creation — is now facing pressure to evolve faster than ever. While TCS insists AI isn't directly responsible, there's no denying that automation, changing tech stacks, and global economic trends are reshaping workforce demands.
For professionals in the IT sector, this development underscores the urgent need for continuous upskilling, adaptability, and awareness of industry trends.
Disclaimer: This article is based on available public statements and expert commentary. Readers are advised to consult with employment and legal experts for individual concerns or actions.