Tata Consultancy Services (TCS) is laying off around 12,000 employees, which accounts for about 2% of its global workforce of over 613,000 people. The decision is attributed to a strategic realignment to address future skill requirements, rather than immediate AI productivity gains or macroeconomic pressures.
The layoffs have sparked reactions on Reddit, with some users expressing concerns about job security. One user commented, "Job security was the only USP of TCS. Now, why would anyone want to join it?" Others joked about the situation, saying, "No annual increment and now 2% cut... Niiiiiicccceeee." Some users also empathized with those affected, with one mentioning, "I am sorry but AI can replace 75% people like me in Indian companies. AI has become too smart."
According to TCS CEO K. Krithivasan, the layoffs are due to a "skill mismatch" and the company's transition from a project-based waterfall model to a product-centric agile structure. The company has been investing in AI deployment and employee reskilling, but some roles couldn't be effectively transitioned.
TCS is offering support to affected employees, including notice period payments, severance packages, insurance benefit extensions, and career counseling services. The company is also partnering with third-party agencies to offer outplacement support. While the layoffs may be a challenging time for those impacted, TCS is taking steps to ensure a smooth transition and support their employees through this period.
