TCS Announces Major Workforce Reduction: 12,000 Jobs Cut in Strategic Tech Overhaul
The Federal1 month ago
1070

TCS Announces Major Workforce Reduction: 12,000 Jobs Cut in Strategic Tech Overhaul

Tech Industry
tcs
itjobs
workforcereduction
techtransformation
ai
Share this content:

Summary:

  • TCS to cut 12,000 jobs (2% of its workforce) as part of a strategic tech transformation

  • Reduction not due to AI replacing jobs but roles where reskilling wasn't feasible

  • Affected employees to receive full notice-period salary, severance, and outplacement support

  • Move reflects broader industry trends with other IT firms also restructuring workforces

  • TCS's new bench policy raises concerns among employees about potential layoffs

Mumbai-based Tata Consultancy Services (TCS), India's largest IT services firm, has unveiled plans to reduce its global workforce by approximately 2% over fiscal 2026, impacting around 12,200 employees. This decision is part of a broader strategic transformation aimed at aligning staff capabilities with future business models, amidst rapid technological advancements and changing client demands.

Strategic Shift Towards Future Technologies

TCS CEO K. Krithivasan emphasized that the workforce reduction is not a result of AI replacing jobs but reflects roles where redeployment and reskilling have not been feasible. The company is investing heavily in emerging technologies, AI deployment, and expanding into new markets, necessitating a revamp of its workforce model.

Compassionate Exit for Affected Employees

Impacted staff will receive full notice-period salary, severance packages, extended insurance coverage, and access to outplacement support and counselling services. TCS has pledged a compassionate exit to ensure the transition is as smooth as possible for those affected.

Industry-Wide Trends and Implications

This move mirrors broader sector trends, with other Indian IT giants like Infosys, Wipro, and HCLTech also grappling with the need to restructure workforce models in response to rising automation and margin pressures. TCS's recent revision to its bench policy, limiting non-billable days, has sparked concerns among employees about potential layoffs and employment rationalization.

Outlook for TCS and the IT Sector

For TCS, this restructuring is a step towards building a more agile, skill-aligned workforce, pivoting towards higher-value services and emerging technologies. However, the changes signal caution for investors and industry watchers, highlighting the challenges of slower demand and competitive margin pressures in the tech industry.

Comments

0

Join Our Community

Sign up to share your thoughts, engage with others, and become part of our growing community.

No comments yet

Be the first to share your thoughts and start the conversation!

Newsletter

Subscribe our newsletter to receive our daily digested news

Join our newsletter and get the latest updates delivered straight to your inbox.

OR
RemoteITJobs.app logo

RemoteITJobs.app

Get RemoteITJobs.app on your phone!