In a move set to shake up the Indian IT job landscape, Tata Consultancy Services (TCS) has announced plans to lay off over 12,000 employees approximately 2% of its global workforce, during the 2026 financial year. 

The layoffs will primarily impact middle and senior management, as the company realigns itself with emerging technologies and future skills requirements.

AI, Operating Models & the Skills Shift

According to TCS CEO K Krithivasan, the workforce restructuring is not about cost-cutting or AI replacing jobs, but rather about preparing for the future. “We’ve been deploying AI at scale and are evaluating the skills we need going forward. Despite strong investments in employee development, some roles are no longer feasible for redeployment,” he told Moneycontrol.

He stressed that the decision was one of the toughest of his tenure and was taken after efforts to reskill and retain talent. “This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS stated.

Employee Reactions Reflect Anxiety and Frustration

The announcement has sparked a wave of concern online. On X (formerly Twitter), one user commented, “If TCS is laying off, what will happen in other IT firms? Looks horrible.” Others pointed to AI as the driving force, saying the threat is no longer futuristic, “it’s already here.”

Reddit users echoed similar sentiments, expressing frustration with internal practices. One user wrote, “Talented engineers are stuck in support roles. The laid-back approach is not from engineers but from management.”

What This Means for the IT Job Market

With the Indian IT sector already under pressure from changing client demands and AI integration, TCS’s move signals a broader shift in employment dynamics. For tech professionals, reskilling and adaptability are no longer optional, they’re essential