One of India’s largest IT firms, Tata Consultancy Services (TCS) has decided to let 2 percent of its global workforce go. This number looks small on paper until you believe that TCS employs about 6,13,000 people of 6,13,000 people in many offices spread in many geographical locations. A 2 percent reduction is therefore a large quantity for 12,000 employees in the queue to get a dreaded pink slip. TCS has learned to hand over him to him through FY 2026 (April 2025 to March 2026). Reports say, trimming will mostly affect mid and senior level employees, although the division or department-wise impact is not clear at the time of writing. This news confirmed the CEO. Krithivasan performed an interview with Moneycontrol.

While speculation quickly linked the trimming with the use of AI, Kritivasan pushed back the idea that “AI is giving some 20 percent productivity benefits” was the reason behind taking such a big step. Instead, they have attributed the decision to “skill mismatched” and “deployment feasibility” for some roles, especially among those accustomed to heritage project-management and work waterfall models. “We are changing new techniques, especially AI and operating models. Changing ways of working,” Krithivasan stressed that TCS is on a trip to become a “ready-made organization” and it will require a lean, more product-conquered workforce to reach there.

Krithivasan has admitted that TCS tried to raise its employees. Drives are called large scale to work in new, future ways to work in a new, future way and actually streamline operations, with more than half a million employees, received training in basic and advanced AI and other unwarded emerging technologies. While not clearly confirmed, it is likely to give some cost to the company. It seems that all employees can learn themselves to the developed structure, adapt and re -achieve. “Nevertheless, we find that there are roles where redistribution is not effective. It has not been an easy decision and I have to take as CEOs as one of the most difficult decisions,” Krithivasan said while announcing the layoffs.

Nevertheless, you cannot completely dismiss the impact of AI on jobs in TCS. Yes, you have to read between lines, but once you are saying what you are saying, start paying full attention to it. Krithivasan’s comments clearly add deduction to the requirement of employee skills with a new, AI-operated operating model, the company is following. Due to the new techniques, “methods of working are changing”, including AI, which demands a separate set of competencies. The company focuses on the “ready” and “agile” structure associated with its important investment in AI, suggests a strategic reality where traditional roles may not simply be fit, the limit will be defined by TCS.

Industry experts have said that the wheels are already in speed. They are for some time. We can see some changes for ourselves. At the age of vib-coding and AI agents, there are much more than only helping to help improved code, in terms of minutes to create full apps and websites through all, client projects are becoming increasingly small and smaller, companies pushed software service providers to take advantage of AI for greater efficiency. For example, traditional tests such as skills, relevance are rapidly decreasing in relevance as AI devices automate many of these functions.

Companies themselves are using AI for regular and often complex tasks. Within Google, Microsoft, and Slesforce, AI is writing up to 50 percent code, something that was ever part and parcel for humans, which they would work with large payroll and attractive allowances. This naturally reduces the need for large teams. Amazon CEO Andy Jassi recently told the employees that he would have to handle himself to cut AI as the biggest reason behind gear changes. It is possible that some senior employees, may show resistance to adopt this new landscape, and further skills quoting mismatched mismatch.

“This is a hard call that we have to take to create a strong TCS,” he said, assuring that the company is trying to make the process as kind as possible. While the official stance is carefully away from AI as an elephant in the room, the broader references for this structural change as one of the major catalysts aspires it and gives it location. For example, the trimmer appears more about direct AI displacement and more about a strategic repetition of the workforce to meet the rapid AI-focused future demands in IT services. The message is vigorously and clear: it will be important for existence in the industry that develops a quick adaptation for new techniques. This is, as it has always been, about the existence of all qualifications.