In a significant move, Tata Consultancy Services (TCS), India’s largest IT services provider, is reportedly planning to cut around 12,000 jobs as part of an internal restructuring. This development comes amid global economic uncertainty, shifting client demands, and the increasing adoption of AI and automation in tech services.
According to sources close to the matter, the job cuts will primarily affect mid-level roles and non-billable positionsacross geographies. TCS is expected to implement the layoffs in a phased manner over the next few quarters, focusing on optimizing costs and increasing efficiency.
Why is TCS Cutting Jobs?
TCS, which employs over 600,000 professionals globally, has cited multiple factors for this tough decision:
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Slowdown in client spending across BFSI (banking, financial services, and insurance), retail, and manufacturing sectors.
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A global shift to cloud and AI technologies, requiring fewer traditional IT support roles.
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Rising pressure on margins due to global inflation and delayed decision-making by clients.
What Does It Mean for the Indian IT Sector?
This development marks one of the largest job cuts by any Indian IT company in recent years. It signals a shift in the hiring and operations strategy of major IT players, emphasizing automation, upskilling, and leaner delivery models.
Experts say this is a wake-up call for India’s tech workforce to embrace new skills like AI, machine learning, cloud computing, and cybersecurity to stay relevant in the changing tech landscape.
TCS Responds
In a brief statement, TCS mentioned, “We are continuously evaluating our workforce and operational models to align with client priorities and emerging technology needs. Impacted employees will be supported through career transition services.”
While the company has not officially confirmed the exact number, multiple reports suggest the 12,000 figure is part of an internal proposal already under discussion at the leadership level.
