New Delhi: India’s IT sector is going through a tough time, and even the biggest companies aren’t safe anymore. Tata Consultancy Services (TCS), one of the top IT firms in India and globally, recently announced that it will cut around 12,000 jobs, that’s about 2% of its workforce. This news has left many IT professionals shocked and worried.
But this isn’t just about one company. It’s a sign of a much bigger shift happening in the tech world.
Why is TCS laying off so many people?
TCS says the layoffs are not just because of Artificial Intelligence (AI), even though many people think so. Instead, it’s about changing project needs and skill mismatches. In simple terms, the company says some job roles are no longer useful, while new roles need different skills, and not everyone is trained for those.
Many employees who are not currently working on any project (also called ‘benched employees’) in cities like Pune, Chennai, and Hyderabad are being told to find projects within 35 days, or they may lose their jobs.
Also, new hires are facing delays of over 65 days to get onboarded. At the same time, salary hikes are being paused, and lateral hiring (hiring experienced professionals) has stopped
What’s really happening behind the scenes?
Industry experts say this isn’t just about a business slowdown. It’s more about how fast AI and automation are taking over work that once needed people. Tasks like basic coding, testing, and documentation are being done by machines now. This means companies want employees with specialised skills, not just people who can do routine work.
Former Tech Mahindra CEO CP Gurnani made a very interesting point by using a famous line from the movie Sholay, hinting that the IT sector needs to move beyond counting heads and start focusing on skills and outcomes.
Similarly, Ganesh Natarajan, ex-chairman of NASSCOM, said that the old way of working in IT, where there were many juniors at the bottom and a few seniors at the top (the “pyramid model”), is now outdated. He even called it “Jurassic Park material.”
TCS isn’t the only one. Companies like Infosys, Wipro, and HCLTech have also seen big drops in employee numbers. Infosys has around 12,000 fewer employees now than before. Wipro’s headcount is down by 25,000 over two years. HCLTech is also moving teams around due to location and skill mismatches.
Entry-level jobs like BPO and customer service are the most at risk. That’s because automation and vendor consolidation are making these roles less important.
What is NASSCOM saying?
NASSCOM, the IT industry’s top body, agrees that more layoffs might come. But they also see this as a chance for change. They believe AI and automation will create new types of jobs, but people must be ready to learn and upgrade their skills.
To them, approximately 1.5 million individuals have already participated in skilling programs, and close to 95,000 have received certifications in emerging tech domains such as AI, data science, and cybersecurity.
What’s the real lesson here?
I regard this as an eye-opener. India’s IT industry was always regarded as a secure career path, but now things are shifting at a rapid pace. We must change the way we study and prepare for our future. It’s not about obtaining a degree anymore, it’s about being adaptable, inquisitive, and open to learning new skills.
Future jobs will require problem solvers, not necessarily individuals who take instructions. AI is not going to steal all our jobs, but it is going to steal the jobs of those who do not want to learn.
