Tata Consultancy Services (TCS), India’s largest IT firm, has announced plans to lay off over 12,000 employees, accounting for 2% of its global workforce. This is the largest downsizing move ever seen in the Indian IT industry, highlighting the current challenges in the tech sector. Most of those impacted are at mid to senior levels, as the company shifts its focus towards emerging technologies and global restructuring.
‘Difficult Call’ but Not Linked to AI, Says CEO
TCS CEO K Krithivasan called the move a “difficult decision” taken to prepare for the future. He denied that artificial intelligence (AI) is the reason behind the layoffs, stating that it’s more about skill mismatches and deployment issues rather than productivity gains from AI. Despite the layoffs, the company assured that client projects won’t be disrupted, and that the transition will be handled carefully. TCS has also stated that the layoff process will happen gradually over the year.
Employee Support and Rising Protests
TCS has promised to provide affected employees with severance packages, extended insurance, career transition support, and counselling services. However, the move has triggered strong backlash from employee unions, including FITE and NITES, who have termed the layoffs as illegal and profit-driven.
Unions have urged employees to not resign under pressure and to reach out for legal help if necessary. A formal complaint has also been raised with Labour Minister Mansukh Mandaviya, seeking intervention and a halt to the terminations.This decision comes at a time when the global tech industry is witnessing similar trends — with over 80,000 layoffs reported across 169 companies in 2025 alone. Experts say this reflects the broader uncertainty facing the IT sector, including rising automation, slow contract growth, and margin pressures.
