Tata Consultancy Services (TCS), one of India’s biggest IT companies, recently decided to lay off around 12,000 employees. This is about 2% of its total global workforce. Many people are curious and worried about why such a large number of people are losing their jobs. Let’s explain in simple words what is happening and why.
What Is the Main Reason for TCS Layoffs?
The main reason is that TCS is changing how it works and the kind of skills it needs from its employees. Many workers, especially those in the middle and senior levels, have skills related to older technology and traditional ways of working. These skills don’t fit well with the new projects TCS is focusing on, which use modern technology like artificial intelligence (AI), cloud computing, and agile methods.
TCS calls this problem a “skill mismatch.” It means some employees’ skills don’t match the new work that TCS needs done, so it becomes hard to put them on projects. Because of this, TCS is laying off those employees who do not currently fit these new needs.
Is AI Taking Away Jobs at TCS?
Many people think AI is the reason for the layoffs, but TCS says that’s not the main cause. AI and automation are helping TCS do things better and faster, but the layoffs are mostly due to the fact that some employees have skills that don’t match new job requirements. TCS has also trained over 550,000 people in basic AI skills, and about 100,000 employees have advanced AI training. Still, not everyone has been able to keep up with these changes.
What Other Reasons Are Behind the Layoffs?
Besides the skill mismatch, the IT industry as a whole is facing economic pressure. Growth is slowing, and companies are trying to control costs. This means they have to work smarter and focus on being ready for the future by using new technologies. TCS’s layoffs are part of this strategy to become a stronger and more flexible company.
What Is TCS Doing to Help Those Who Are Laid Off?
TCS has promised to support the employees who are losing their jobs. They will get:
- Severance pay (a fixed payment when they leave)
- Pay for the notice period (time before they officially leave)
- Continued insurance benefits for some time
- Help in finding new jobs
Despite these efforts, some employee groups are unhappy and have asked the government to stop the layoffs, saying they are unfair.
What Does This Mean for the Future?
The TCS layoffs show how important it is for workers to keep learning new skills, especially in technology. The IT industry is changing fast, and employees who adapt will have better chances of success. For companies like TCS, having the right skills and being able to work in flexible ways is key to staying competitive.
In Short…
TCS is firing 12,000 employees because it needs a workforce that fits the new ways it is working — with modern technology and faster, smarter project methods. It’s not mainly because AI is stealing jobs, but because the company wants to be prepared for the future. This is a big change for both TCS and the whole Indian IT sector.
