Government Monitoring TCS Layoffs
India’s IT Ministry is keeping a close watch on Tata Consultancy Services (TCS) after the company announced it would cut 12,261 jobs—about 2% of its global workforce. Officials are in direct contact with TCS, seeking transparency on the rationale and broader implications of the move. The government is also considering cushioning the impact through initiatives like the Employment Linked Incentive scheme.
TCS’s Justification: Future-Readiness, Not AI
According to TCS, the layoffs are part of a major transformation drive aimed at becoming a “future-ready organisation.” While automation and AI investments are underway, CEO K Krithivasan clarified that the layoffs are due to skill mismatches, especially at the mid- and senior levels, not because AI is replacing jobs.
Union Calls It ‘Illegal’ and Seeks Intervention
Employee union NITES has written to Labour Minister Mansukh Mandaviya, branding the layoffs “illegal.” They have demanded a reversal of the decision, raising concerns over the exclusion of lateral hires and questioning the fairness of high executive pay amid mass job cuts. They also urged the government to hold TCS leadership accountable.
Reskilling Becomes Critical
The layoffs have reignited debates on workforce readiness in India’s IT sector. The government is expected to push for more aggressive skilling initiatives, particularly for senior professionals whose roles are being disrupted. TCS has promised severance pay, counselling, and outplacement assistance to affected staff.
A Broader Shakeout in the Making?
Although no other IT major has announced similar cuts, signs of a broader shakeout are visible. TCS added only 5,000 employees in Q1 FY26 and has introduced stricter productivity measures like capping non-billable days. Companies like Infosys are also slowing down onboarding.
The Bigger Picture
The developments at TCS are a bellwether for India’s IT landscape. As companies seek to become leaner and more agile, mid-career professionals face increasing pressure. The emphasis on productivity, internal redeployment, and continuous reskilling is likely to become the new norm—reshaping the future of India’s tech workforce.
