Hey there! Did you catch the news about TCS layoffs? India’s biggest IT services company just announced it’s cutting around 12,000 jobs, about 2% of its workforce, primarily affecting mid‑ to senior‑level roles
Let’s break this down like a chat over coffee:
1. What’s going on at TCS?
At the end of June 2025, TCS employed over 613,000 people globally. Now, they’ll reduce headcount by roughly 12,000–12,261 over the financial year—mostly mid‑management and senior technical staff.
TCS says it’s not because of AI. Instead, the case is about a skill mismatch—some employees couldn’t be redeployed after massive reskilling efforts. Yet the real driver? A pivot toward new‑tech models, including AI, cloud, and automation. And yes, that tech is quietly replacing repetitive roles.
2. What’s really fueling the layoffs?
- Skill mismatch, according to CEO K. Krithivasan—not AI productivity gains. He might even find this his toughest decision yet.
- TCS expanded headcount by 36% since 2020, outpacing revenue growth—meaning per‑employee costs rose ~25%, prompting a restructure to cut ~4% in costs, equal to roughly 12% of FY25’s net profit.
- Their new bench policy also pressures unassigned staff; employees not placed into projects within ~35 days face termination—adding to anxiety about rising job losses beyond the announced number.
3. What happens to people getting let go?
TCS says it’ll handle this with compassion—offering:
- Full pay during notice period
- Extra severance packages
- Extended health insurance
- Outplacement services: counseling and job‑search help
Union groups like NITES disagree, calling the layoffs “unethical” and flagging possible coercion during resignations. Government and the IT Ministry are also monitoring the issue closely
4. How the rest of the industry is reacting
- Infosys explicitly ruled out layoffs—committed to hiring 20,000 freshers, investing in employee reskilling and AI learning instead—drawing contrast to TCS’s cuts.
- In the broader IT sector, ET reports showed top 6 companies added just 3,847 people April–June 2025, down over 70% from the prior quarter—a clear hiring slowdown.
- Analysts say other majors like Wipro, HCL, and Tech Mahindra could follow TCS’s playbook by reducing headcount or freezing raises and senior hiring.
5. Why you should care — and what you can do
This isn’t just a headline—it’s a wake‑up call. The decades‑old “bench strength” employment model is crumbling. As CP Gurnani (ex‑Tech Mahindra CEO) puts it, the era of “Kitne Aadmi the” is over—output, not headcount, wins in the AI age.
Actionable moves to future proof yourself:
- Upskill fast: Learn cloud, AI/ML, cybersecurity, automation tools.
- Diversify income streams: Freelancing, consulting, micro‑ventures.
- Stay visible and productive: Bench time is risk time at TCS now.
- Network & personal brand building: Internal and external visibility matters.
| Topic | Snapshot |
|---|---|
| Why? | 2% of workforce (~12K) laid off due to skill gaps and cost realignment |
| Who’s affected? | Mid/senior roles + unplaced bench employees |
| Support offered | Severance, insurance, outplacement support |
| Industry response | Hiring freeze at other tops; Infosys hires freshers/reskills |
| Your takeaway | AI‑driven disruption is real—stay ahead by learning and diversifying |
Final thoughts
Yes, TCS layoffs are unsettling—but they’re also symptomatic of a larger transformation across Indian IT. The pace of AI and automation adoption is accelerating. If you’re complacent, this could happen to you—or someone like you—next. The choice is yours: adapt or be obsolete.
Share this with your colleagues or friends in the IT corridor—because it’s better to be prepared than blindsided.
