India’s largest IT services company, Tata Consultancy Services (TCS), is set to cut nearly 12,000 jobs over the next year, marking a significant workforce reduction amid its transition to an AI-driven operating model. The layoffs, confirmed by CEO K Krithivasan, will primarily target mid-level and senior employees as the company shifts focus towards becoming more agile and aligned with emerging technologies.
Krithivasan revealed in an interview that this decision stems from a broader industry transformation, stating that for TCS to stay competitive, it needs to embrace change proactively. He emphasized that this is not merely an AI-triggered cutback, but a strategic effort to future-proof the organization. The CEO noted that although TCS has invested in upskilling employees and exploring redeployment options, those measures haven’t always yielded the desired outcomes, especially at senior levels.
With a current global headcount of over 6.13 lakh employees, the 2% workforce reduction equates to approximately 12,200 job cuts. The company has assured that it will offer severance packages, notice period salary, extended health coverage, and outplacement assistance to the impacted individuals.
Mid and Senior Level Roles Hit Hard
While many tech layoffs tend to impact junior employees first, TCS has clarified that this restructuring is focused largely on mid and senior management. Analysts believe these levels have seen slower adoption of new tech skills and greater resistance to the rapid pace of automation and AI adoption. While Krithivasan refrained from directly blaming artificial intelligence, industry insiders point out that AI has reduced the need for roles like manual testing and repetitive project coordination.
AI Transformation Reshaping IT Talent Needs
The layoffs are part of TCS’s broader push to stay lean and tech-ready in an industry where automation is rewriting traditional job roles. The company is realigning its talent strategy to prioritize AI, machine learning, and other emerging technologies. While the April–June quarter of FY25 saw a net addition of 5,090 employees, the layoffs signal a strategic pivot from expanding numbers to enhancing skill relevance.
TCS also plans to overhaul its bench management approach. Employees without active projects will now be encouraged to seek new opportunities more aggressively, ensuring continuous productivity. The aim, according to Krithivasan, is to maintain a dynamic and deployable workforce rather than accumulate idle headcount.
As global tech firms grapple with the dual forces of digital transformation and AI integration, TCS’s move may be a signal of what lies ahead across the IT sector an era where adaptability, continuous learning, and AI readiness are essential for job security.
