TCS Plans to Cut 12,000 Jobs: What You Need to Know

Tata Consultancy Services plans to reduce its workforce by approximately 2%, impacting over 12,000 employees due to economic uncertainties and AI-driven technological changes. The company will provide affected staff with severance benefits, outplacement services, and extended insurance coverage.

TCS layoffs: Tata Consultancy Services (TCS), India's largest IT services firm, plans to lay off as many as 12,000 employees over this year. This amounts to nearly a 2% reduction in the workforce of the IT giant. In an official statement, TCS mentioned that the layoffs will primarily affect people in the middle and senior grades. The decision is driven by the need to become a future-ready organization amidst economic uncertainties and AI disruptions.

India's IT services sector, with companies like TCS at the forefront, is facing challenges due to ongoing economic uncertainties and the impact of AI technologies on business demands. The layoffs are part of TCS's strategy to rebalance its workforce and remain competitive in the market.

The impacted employees will receive notice period compensation, severance benefits, insurance coverage extension, and career transition assistance. TCS aims to ensure a smooth transition for those affected by this decision.

This move by TCS reflects the broader trend in the industry where companies are adapting to the changing landscape driven by AI technologies. The company's strategic approach includes investments in emerging technologies, market expansion, and restructuring its employment framework to align with the evolving demands of the industry.

According to the source: Times of India.