In a significant move that’s making waves across the Indian IT sector, Tata Consultancy Services (TCS) has announced plans to lay off around 12,000 employees, or roughly 2% of its global workforce. At first glance, this appears to be another case of automation replacing human jobs—but CEO K Krithivasan has clarified that this decision is not driven by artificial intelligence.
In a recent interview, Krithivasan emphasized that the layoffs were not due to AI-led productivity enhancements. In fact, he stated that the cause lies in skill mismatches and deployment challenges, not technological disruption.
Krithivasan described the move as a difficult yet necessary restructuring. The company has found it increasingly hard to place certain employees whose skill sets no longer align with its evolving business model. These changes affect a broad range of employees, but the majority are mid-to-senior level professionals, along with a segment of junior staff who have been unassigned to any projects for extended periods—often referred to as being “on bench” in the IT sector.
Rather than implementing abrupt cuts, TCS plans to roll out the layoffs gradually over FY26, ensuring that the process is skills- and capability-based, not tied to any single geography or department.
A major factor behind this realignment is TCS’s transition from traditional project management methods to agile, product-oriented workflows. In the older waterfall-style model, multiple layers of leadership and management were involved in executing large-scale IT programs. However, the current focus on agile development has reduced the need for redundant oversight roles.
Krithivasan explained that this shift has made certain positions, especially project and program managers, less relevant. The company now favors smaller, cross-functional teams that can respond quickly to dynamic client needs.
TCS has made a commendable effort in offering upskilling and reskilling programs to its employees. Over 550,000 staff members have undergone foundational AI training, while another 100,000 have been trained at advanced levels in emerging technologies.
Despite these initiatives, not all employees have been successfully repositioned. Senior professionals, in particular, may find it more difficult to adapt to highly technical roles or fast-changing workflows. Retraining, while essential, does not always guarantee reassignment—especially when legacy skills become obsolete in newer digital environments.
This highlights a broader challenge in the tech world: modernization of tools and platforms is easier than the transformation of people and mindsets.
Understanding the emotional and financial impact of such layoffs, TCS has promised a compassionate exit process. According to Krithivasan, the company is preparing support systems that may include:
Severance compensation packages
Extended insurance and healthcare benefits
Mental health counseling and guidance
Employees might use outplacement services to locate new opportunities.
This careful, empathetic approach signals that the layoffs are not being taken lightly. TCS aims to manage this transition with as much dignity and support as possible for those affected.
Interestingly, this move doesn't indicate a hiring freeze. On the contrary, TCS continues to actively recruit new talent—especially individuals with advanced skills in cloud platforms, cybersecurity, AI integration, and data analytics.
Krithivasan was clear in his vision: “This isn’t about a drop in demand. It’s about being ready for the future.” The company wants to ensure that its workforce reflects the changing expectations of global clients and the realities of digital transformation.
The TCS layoffs are not just another headline—they reflect a critical shift in the global tech workforce. The challenge today isn’t just keeping up with innovation, but ensuring human capital keeps pace with technological growth.
By being upfront about the reasons and offering transparency, TCS is setting a rare precedent in corporate responsibility. It also sends a message to professionals: in this rapidly evolving landscape, continuous learning and adaptability are not optional—they're essential for survival.
While 12,000 people may be moving on from TCS, the real story is one of transformation—of business models, skill expectations, and the role of empathy in tough decisions. And perhaps that’s the most important truth of all.
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