{"id":1298805,"date":"2025-08-13T11:48:32","date_gmt":"2025-08-13T06:18:32","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1298805"},"modified":"2025-08-13T11:49:07","modified_gmt":"2025-08-13T06:19:07","slug":"tcs-firing-12000-karnataka-govt-will-study-ais-impact-on-job-losses","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/tcs-firing-12000-karnataka-govt-will-study-ais-impact-on-job-losses\/","title":{"rendered":"TCS Firing 12,000: Karnataka Govt Will Study AI&#8217;s Impact On Job Losses"},"content":{"rendered":"\n<p>Karnataka\u2019s IT Minister <strong>Priyank Kharge<\/strong> has announced that the state is in talks with companies to assess the impact of <strong>artificial intelligence (AI)<\/strong> on the workforce. The evaluation, expected to conclude in about a month, comes at a time when the IT industry is facing large-scale layoffs and macroeconomic headwinds.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"615\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-13-at-11.47.38\u202fAM-1024x615.png\" alt=\"\" class=\"wp-image-1298809\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-13-at-11.47.38\u202fAM-1024x615.png 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-13-at-11.47.38\u202fAM-300x180.png 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-13-at-11.47.38\u202fAM-768x461.png 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-13-at-11.47.38\u202fAM.png 1488w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The development follows <strong>Tata Consultancy Services (TCS)<\/strong>\u2019 decision to cut 12,000 jobs \u2014 roughly 2% of its global workforce \u2014 this year. The move has rattled the tech sector, already grappling with sluggish growth, geopolitical uncertainty, and delayed client spending decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">TCS\u2019 Workforce Realignment Strategy<\/h2>\n\n\n\n<p>According to TCS, the layoffs are part of its plan to become a <a href=\"https:\/\/hr.economictimes.indiatimes.com\/news\/industry\/karnatakas-ai-workforce-impact-survey-to-address-job-cuts-amidst-tcs-layoffs\/123145913#:~:text=Bengaluru%3A%20Karnataka%20IT%20Minister%20Priyank,slash%2012%2C000%20jobs%20this%20year.\">\u201cfuture-ready organisation,\u201d which includes:<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large-scale AI deployment for clients and internal processes<\/li>\n\n\n\n<li>Entering new markets<\/li>\n\n\n\n<li>Deepening strategic partnerships<\/li>\n\n\n\n<li>Building next-generation infrastructure<\/li>\n\n\n\n<li>Workforce realignment<\/li>\n<\/ul>\n\n\n\n<p>The company emphasised that reskilling and redeployment are underway, but employees whose roles cannot be reallocated will be released \u2014 primarily from middle and senior levels.<\/p>\n\n\n\n<p>TCS Managing Director <strong>K Krithivasan<\/strong> attributed the cuts to \u201cdemand contraction\u201d driven by ongoing macroeconomic and geopolitical instability. He ruled out double-digit revenue growth for FY26, noting that delays in client decision-making have intensified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Karnataka\u2019s Stand on IT Unions<\/h2>\n\n\n\n<p>Kharge clarified that Karnataka does not officially recognise IT sector unions but added that the government is responsible for addressing concerns raised by the public. The minister said the state\u2019s focus is on ensuring that <strong>human resources remain employable<\/strong> in the evolving tech landscape, with a survey being conducted to identify actionable steps.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Global Layoffs Trend<\/h2>\n\n\n\n<p>The job cuts in India mirror a broader global trend. <strong>Microsoft<\/strong> has laid off over 15,000 employees in 2025, representing 7% of its workforce. Globally, over <strong>80,000 tech workers<\/strong> have been laid off this year across 169 companies, according to <strong>Layoffs.fyi<\/strong>. In 2024, the figure was nearly <strong>150,000<\/strong>.<\/p>\n\n\n\n<p>Industry analysts link the trend to both economic slowdowns and the <strong>disruption caused by AI<\/strong> \u2014 which is automating certain roles while creating demand for new skills.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s Next<\/h2>\n\n\n\n<p>The Karnataka government\u2019s AI workforce impact study may influence reskilling initiatives, hiring policies, and potentially even labour regulations. For now, the IT sector\u2019s challenge is balancing technological transformation with employment stability.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.thefinancialworld.com\/karnataka-government-temporarily-withdraws-controversial-local-job-quota-bill-amid-industry-backlash\/\">Image Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka\u2019s IT Minister Priyank Kharge has announced that the state is in talks with companies to assess the impact of artificial intelligence (AI) on the workforce. The evaluation, expected to conclude in about a month, comes at a time when the IT industry is facing large-scale layoffs and macroeconomic headwinds. The development follows Tata Consultancy [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1298809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[271,578,986,92],"class_list":["post-1298805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-ai","tag-job-loss","tag-karnataka","tag-tcs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TCS Firing 12,000: Karnataka Govt Will Study AI&#039;s Impact On Job Losses - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/tcs-firing-12000-karnataka-govt-will-study-ais-impact-on-job-losses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TCS Firing 12,000: Karnataka Govt Will Study AI&#039;s Impact On Job Losses - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"Karnataka\u2019s IT Minister Priyank Kharge has announced that the state is in talks with companies to assess the impact of artificial intelligence (AI) on the workforce. 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