US EditionTCS Layoffs Impact: Nasscom Expects ‘Workforce Rationalisation’ in Tech Industry, Experts Warn of Cost Pressures, AI
INDIA, JUL 29 – TCS will cut 12,000 jobs, about 2% of its workforce, focusing on middle and senior staff amid AI-driven shifts and market challenges, aiming for strategic realignment.
- On Sunday, Tata Consultancy Services said it will lay off over 12,000 employees, or about 2%, as it invests in AI and restructures for the future.
- Amid growing skills mismatch, enterprises are reassessing roles as Nasscom said fewer than 20% of Indian IT workers are AI-skilled, despite a need for 1 million AI professionals by 2026.
- TCS said layoffs began in July, targeting employees aged 24-55 in Bengaluru, London, and Princeton, including unbilled staff on the bench for 3 to 18 months.
- Unions have urged intervention from the Labour Ministry after NITES appealed to Labour Minister Mansukh Mandaviya to stop layoffs, calling them 'inhumane', 'unethical' and 'outright illegal'
- Looking ahead, Nasscom said more workforce transitions are likely as companies shift to AI-driven models and over 1.5 million professionals have undergone AI training by the fourth quarter of FY25.
13 Articles
13 Articles
AI-led disruption may trigger more layoffs, says Nasscom
Nasscom warns of more layoffs as IT firms transition to AI-driven, product-centric models, following TCS’s job cuts. While short-term disruptions loom, the industry body stresses upskilling and collaboration as key to preparing India’s tech workforce for the AI-led future.
TCS layoffs impact: Nasscom expects ‘workforce rationalisation’ in tech industry, experts warn of cost pressures, AI
TCS layoffs impact: Industry body Nasscom foresees an inflection point, with some “workforce rationalisation” expected in the tech sector in the near term; while experts are warning about AI, cost pressures, and automation.
Hiring freeze at TCS; increments paused globally
The buzz around Tata Consultancy Services’ (TCS) announcement to lay off two per cent of its global workforce is still on, and now, the Indian multinational has decided to freeze hiring too. To add to the anxiety, the company has also decided to put a pause to annual salary increments, globally. These announcements coming one after the other have naturally made those in the industry anxious, given the demand slump and increased focus on artifici…
‘Stop All Layoffs’: NITES Urges Labour Minister to Intervene in TCS’s 12,000 Job Cuts - PUNE PULSE
India’s largest IT services firm, Tata Consultancy Services, under fire as unions call mass terminations unethical, illegal, and a threat to job security norms. Tata Consultancy Services (TCS), India’s leading IT services firm, is facing a formal complaint from the Nascent Information Technology Employees Senate (NITES) after confirming plans to lay off nearly 12,000 permanent
Indian IT outsourcing layoffs put service stability on the line for CIOs
TCS, Wipro, HCLTech, and Tech Mahindra have collectively laid off over 25,000 employees in the first half of 2025 — despite stable revenues and healthy margins — sending a signal CIOs couldn’t ignore. These weren’t routine job cuts. They reflected a deeper structural shift in India’s outsourcing model, shaped by pandemic-era overhiring and investor pressure toward AI-led delivery. If we consider workforce reduction by Indian IT services firms ov…
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