TCS Layoffs 2025

The Indian IT sector, long regarded as a symbol of job security and steady growth, is facing a harsh reality check. Tata Consultancy Services (TCS), India’s largest IT services company, recently announced the layoff of 12,000 employees. This decision has sparked widespread debate and unease, not only within the company but across the industry.

A Breaking Point for the IT Workforce

Employee unions and industry observers are calling this one of the most significant workforce reductions in TCS history. Reports suggest that employees are being pressured to resign, an allegation that unions are actively opposing. This has added to the anxiety of IT professionals already grappling with uncertainty in the global market.

AI Isn’t the Villain?

While many have linked these job cuts to the rising adoption of Artificial Intelligence and automation, TCS CEO K. Krithivasan clarified that AI was not the direct reason. Instead, he cited business restructuring, evolving client demands, and cost optimization as the primary drivers behind the layoffs. He emphasized that the company is recalibrating its workforce to align with new business priorities.

Industry-Wide Shockwaves

This decision is more than just a company-specific move. The layoff sends a strong message across the IT industry: the old comfort zone of large-scale job security is shrinking. With clients demanding faster turnaround times and cost efficiencies, IT firms are being pushed to rethink traditional staffing models.

What It Means for Employees

• Upskilling is no longer optional: Employees must stay aligned with emerging technologies and specialized skills.
• AI-driven roles are rising: Even if AI wasn’t the reason behind these cuts, it will shape future roles. Professionals need to prepare for hybrid roles blending tech fluency with domain expertise.
• Job mobility matters: Relying on the brand value of an employer is no longer enough. Career adaptability is key.

Unions Call for Transparency

Employee unions have urged TCS to avoid forcing resignations and to follow fair and transparent processes. The unions are also demanding severance packages and reallocation opportunities for affected employees.

The Bigger Picture

The TCS layoffs highlight a fundamental shift in India’s IT job market. While business priorities and market cycles have always influenced employment, the speed and scale of these changes are accelerating.

While layoffs and job cuts create anxiety, it’s also a reminder of the importance of being future-ready.
This is exactly where Kriti steps in. Kriti is your AI-powered career co-pilot, designed to help you stay ahead of the curve. It empowers job-seekers to navigate uncertain times with clarity and confidence. Whether you’re exploring new roles, upskilling, or simply wanting to understand your market worth, Kriti helps you make smarter career moves.