Tata Consultancy Services is expected to cut about 12,200 middle and senior management jobs, marking the largest layoffs by India’s top private employer.

TCS cited skill mismatches for the reduction, but experts say this signals a broader trend driven by AI adoption.

Analysts estimate up to 500,000 jobs could be at risk across India’s $283 billion IT outsourcing sector over the next two to three years.

Automation and AI are taking over tasks like coding, testing, and customer support.

The sector employed 5.7 million people as of March 2025 and accounts for over 7% of India’s GDP.

TCS had over 613,000 employees before the layoffs and did not specify how many cuts are directly tied to AI adoption.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ TCS layoffs reflect a recurring pattern during major technology transitions

While TCS framed the current 12,000 job cuts as addressing “skill mismatches,” the company has previously used large-scale layoffs to navigate industry shifts.

During 2014-2015, TCS laid off 2,574 employees in just nine months, with projections that total layoffs for that fiscal year could exceed 3,000 12.

Those earlier layoffs targeted middle and senior management employees rated ‘C’ or below, similar to the current cuts affecting middle and senior management roles.

The 2014-2015 layoffs coincided with TCS simultaneously hiring 35,000 fresh graduates, suggesting a strategy of replacing higher-paid experienced workers with lower-cost new hires 3.

This pattern demonstrates that TCS has historically used workforce restructuring as a tool during periods of technological or economic transition, rather than the current layoffs being an unprecedented response to AI disruption.

2️⃣ AI-driven job cuts are accelerating across the global tech industry

The scale of predicted layoffs in India’s IT sector aligns with broader global trends showing AI’s direct impact on employment.