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TCS cuts 12,000 jobs to align with AI advancements

Tata Consultancy Services plans to reduce workforce by 2% as it embraces AI technologies.

July 28, 2025 at 10:35 PM

India's AI-driven tech firings could derail middle class dreams

The Indian software industry braces for change after significant layoffs at TCS.

India's tech sector faces upheaval as TCS announces job cuts

Tata Consultancy Services, India's largest IT services firm, has revealed plans to cut over 12,000 jobs, reducing its workforce by 2%. This move aims to prepare for an AI-driven future as the company navigates changes in its traditional business model and responds to market demands for innovative solutions. Despite having a workforce of more than 500,000, TCS states this decision was necessary to align with new technological directions. Experts warn of a skills mismatch, with many IT professionals lacking the AI skills needed for future roles. As the industry shifts, the need for one million AI professionals by 2026 looms large, but current upskilling efforts are inadequate to meet that demand.

Key Takeaways

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TCS announces a 2% workforce reduction, equating to over 12,000 jobs lost.

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The shift to AI raises concerns about job security for mid-level management.

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India faces a skills gap, with only 20% of IT professionals skilled in AI.

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Regulatory changes and market demands are reshaping the IT landscape.

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Emerging areas such as AI and cloud technology are experiencing growth in hiring.

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The urgent need for upskilling contrasts with the fast pace of layoffs.

"There's been a massive spike in emerging tech hiring in areas such as AI, cloud, data security."

Neeti Sharma highlights the growth in tech areas, contrasting job cuts in other sectors.

"This technology shift is forcing businesses to reassess their workforce structure."

Rishi Shah discusses the urgent need for businesses to adapt to new AI capabilities.

The layoffs at TCS signal a broader transformation in India's software industry, reflecting a shift from labor-intensive work to AI-enhanced methods. While this may streamline operations and improve productivity, the fallout for mid-level workers could be significant. The painful reality is that many skilled professionals are being left behind in this technological race. The urgent need for AI training highlights a critical gap in the workforce, potentially leaving thousands without job opportunities as companies seek to adapt swiftly to an evolving landscape. This raises questions about the future of white-collar employment in India and the resilience of the middle class.

Highlights

The layoffs at TCS reflect a seismic shift in the job landscape.
AI advancements may enhance productivity but endanger job security.
India needs one million AI professionals, a tall order given current trends.
The skills gap in India's tech industry is becoming a pressing concern.

Job security concerns rise amid tech layoffs

The job cuts at TCS highlight a troubling shift in India's IT sector, raising fears about job security for many. As companies pivot towards AI, mid-level workers face significant risks of displacement without proper retraining opportunities. This situation could lead to widespread public concern and backlash among the highly skilled middle class.

The future of India's tech workforce hangs in the balance as rapid change unfolds.

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tcs ai employment technology india business technology employment

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