The Tata Group, India’s largest IT company, plans to pruning around 12,000 employees in TCS next year. Tata Consultancy Services CEO K.K. Kritivasan (TCS CEO) has confirmed that this layoffs will have the most impact on medium and senior level employees. The company plans to cut its total number of employees by about 2 percent.
According to a report by more than 6 lakh employees India Today in TCS, TCS of Tata Group is going to trim about 2 percent of its employees. If we look at the total number of employees of the company, then these are around 12,000 employees, whose jobs are in danger and they can be shown the way out of the company next year. If we talk about the number of employees working in TCS, then by June 2025, 6,13,000 people were working in this Tata company globally.
What is the reason for this big pruning? According to the report, TCS CEO K.K. Kritivasan revealed the retrenchment scheme in an interview to a private commercial platform and described the fast technical change behind it as the main reason. He said that it is part of a comprehensive strategy of making TCS more agile and ready for future. According to Kritivasan, business is changing and working methods are also changing, for the success of every company it is important that companies be ready and agitated for the future under these changes.
According to Kritriivasan, we are now focusing on new technologies and changes in new techniques and operating models like Artificial Intelligence (AI). The company is widely using the AI module and closely assessing the skills required for the future. He further said that we have invested heavily on colleagues, so that they can get development opportunities in career. However, re -release in some areas has not been effective, due to which it has been decided to cut roles.
Where the most impact has been, the CEO of TCS further assured that this layoffs could affect middle and senior level management mainly instead of junior employees. Along with confirmation of the trim, he also said that in addition to the service package to the employees affected by this retrenchment, the salary of notice period, extended health insurance coverage and out placement assistance will be provided. Although the CEO did not directly explain the reason for AI behind the trimming, analysts argue that AI is quietly giving a new look to the demand in the region.
