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All of a sudden, 12,000 people…': Karnataka labour minister calls TCS layoffs ‘alarming’
TCS announced that it will cut two per cent of its global workforce in the financial year 2025–26, affecting around 12,000 jobs.
Karnataka labour minister Santosh Lad termed as “alarming” the massive job cut at at India's largest IT firm Tata Consultancy Services (TCS), which is laying off over 12,000 employees.
TCS announced that it will cut two per cent of its global workforce in the financial year 2025–26, affecting around 12,000 jobs.
"Something unique this is because all of a sudden 12,000 people, that too TCS, is a very huge number… it is an alarming one; our people are talking to them… I will also get to know the reason beyond it… will look into labour law … leniency has always been given to sunrise companies," said Karnataka labour minister Santosh Lad said on Wednesday.
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This is one of the biggest job reductions in the company’s history. Most of those affected are mid to senior-level professionals, though some junior employees, especially those who have been on the bench for a long time, are also impacted.
TCS says layoffs part of strategy to stay agile
TCS CEO K Krithivasan said the cuts are not because of AI-led efficiency gains but part of a broader plan to make the company “more agile and future-ready,” according to a Moneycontrol report.
He added, "It is not because that we need less people. We will continue to look for high (quality) talent, acquiring talent, training talent. That continues to happen. This is more about where there is a feasibility of deployment."
TCS has trained over 550,000 employees in basic AI and about 100,000 in advanced AI to prepare for upcoming tech changes. But many employees, especially in senior roles, have struggled to shift to newer kinds of work. This has been more difficult for those used to older project models.
