TCS affected 12,000 employees due to AI shift, mid -and senior level employees.

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TCS affected 12,000 employees due to AI shift, mid -and senior level employees.

TCS affected 12,000 employees due to AI shift, mid -and senior level employees.

Tata Consultancy Services (TCS) plans to set fire to about 12,000 employees in the next year. Chief Executive K. Krithivasan confirmed that this pruning would prominently affect employees of mid and senior level employees.

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TCS affected 12,000 employees due to AI shift, mid -and senior level employees.
TCS to cut 12,000 jobs between AI shift

In short

  • TCS to reduce the workforce by 2,000 employees, affecting more than 12,000 employees
  • According to reports, the trimming mainly targets middle and senior management
  • While he did not address it directly, TCS CEO signal AI automation is the reason behind this retrenchment wave

India’s largest IT services firm, Tata Consultancy Services (TCS), is ready to reduce its workforce by about 2 percent, a step that will affect more than 12,000 employees, mostly at mid and senior levels, in the next year. Chief Executive K Krithivasan revealed the plans in an interview with Moneycontrol, which creates a decision as part of a comprehensive strategy to make TCS “more agile and for the future” in front of technical changes.

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Asked why the company is resorting to the lack of headcon, Krithivasan explained that the industry itself is changing. He said that the ways of working are changing, and every company needs to be ready and agitated for the future.

“We are calling new techniques like AI and operating model changes,” he said. According to him, the company is deploying AI on a scale, while closely assessing the skill that will need to move forward. He said, “We have invested a lot among colleagues how we can provide them with opportunities for career development and deployment,” he said. However, he admitted that in some areas “redistribution is not effective,” it has been decided to cut the roles.

By June 2025, TCS employed 6,13,000 people worldwide. The reduction of 2 percent is equal to about 12,200 jobs. The CEO insisted that the trimming would be focused on large -scale medium management and senior levels instead of junior employees. Krithivasan was eager to overcome the perception that artificial intelligence is to blame for straight trimmed. “This is not due to AI, but to address the skills for the future,” he told Moneycontrol. “This is about the feasibility in deployment, not because we need fewer people.”

Despite this, analysts argue that AI is quietly opening the demand in the region. Since automation reduces the need for roles such as manual testing, many senior employees have found it challenging to keep pace with emerging technologies. To recurrence, this is not just a case with TCS. For the last 2 years, big players in the corporate world are eliminating roles and changing them with AI automation. And like TCS, not a single company directly addresses it.

Coming back to the upcoming trim of TCS, CEO confirms that the company will provide dissection package, salary for notice period, extended health insurance and outplave for affected employees.

Commenting on the company’s revised approach to the bench management, where the employees wait for new projects without thinking, Krithivasan said, “This is not a proficiency drive. We just want to ensure that allies are capable of looking for projects and ensure that they remain productive through the year, which is more to give them more to give them a positive pressure and promotion.”

Keeping the looming cuts aside, TCS actually extended its workforce during the April -June quarter of FY25, giving 6,071 new employees. On a pure basis, the company’s headcount increased by 5,090 during the same period. The upcoming pruning, however, marks a change in the focus – for TCS, for TCS, the future lies in aligning its giant talent pool, with skills sought by rapidly changing technology landscape rather than sheer numbers.

– Ends

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