Tata Consultancy Companies (TCS) is about to chop round 12,000 jobs globally, roughly 2% of its workforce, in what’s being termed one of many firm’s biggest-ever layoffs. Nonetheless, the IT main has clarified that the choice has nothing to do with synthetic intelligence changing jobs.
In an interview with Moneycontrol, TCS CEO Ok Krithivasan dismissed hypothesis that AI-led productiveness positive factors have been behind the transfer, saying the cuts are attributable to a ability mismatch and the corporate’s incapacity to redeploy sure staff in its evolving enterprise mannequin.
“This isn’t due to AI giving some 20 per cent productiveness positive factors. That is pushed by the place there’s a ability mismatch or the place we expect now we have not been in a position to deploy somebody,” Krithivasan mentioned.
Why the Layoffs?
The job cuts, which is able to happen progressively by FY26, will primarily have an effect on mid-to-senior stage staff, though some junior workers on extended “bench time” — these not at the moment deployed on any challenge — can also be impacted.
Whereas TCS has invested closely in AI upskilling and coaching, together with coaching over 5.5 lakh staff in primary AI and over 1 lakh in superior abilities, the corporate acknowledged that reskilling hasn’t at all times led to re-employment, particularly for senior professionals.
“Some individuals, particularly at senior ranges, discover it tough to transition to tech-heavy roles,” the CEO admitted.
Altering work mannequin
The corporate can be present process a structural shift — shifting away from the standard “waterfall” challenge administration methodology to a extra agile, product-centric mannequin. This modification has lowered the necessity for typical challenge and program managers.
“Earlier, in waterfall fashions, we had a number of management layers. That’s altering,” Krithivasan defined.
‘Tough however crucial’
Krithivasan acknowledged the choice was tough and unprecedented, and warranted that TCS would deal with the layoffs “in a really, very compassionate approach.”
The corporate will provide severance packages, prolonged medical health insurance, psychological well being counselling, and outplacement help to these affected.
On the identical time, TCS emphasised that it stays targeted on future-readiness, and can proceed to rent high-quality expertise.
“This isn’t a query of demand. It’s about us being future-ready,” Krithivasan added.
