TCS Plans to Cut 12,000 Jobs Amid Strategic Realignment

In what will be the largest Tata Consultancy Services layoffs firm, and Tata Group's highest-profitable division, TCS, will axe 12,261 jobs. This is around 2percent of its workforce because AI-driven disruptions and macro-related uncertainties impact the business demand.TCS is chaired by N Chandrasekaran just under 6.1 lakh employees across the globe in June.

The company has been continuously changing its workforce to respond to the changing dynamics of business and other elements. In FY15, it cut more than 3,000 jobs which is about one percent of its employees count. The TCS job cuts will be mainly affecting the senior and mid-level executives.

The decrease in the number of employees that was once thought to be uncommon in the field emphasizes the difficult demand climate, particularly when there are no large deals such as BSNL. Many industry experts believe this is a early indication of a wider shift in the way that a growing dependence on automation and profit pressures are forcing businesses to workforce reduction TCS for employees.

TCS stated that the restructuring program is designed to transform the company into a forward-looking organization. The announcement has raised questions regarding AI's role in the workplace and the IT industry layoffs in India.

"This encompasses strategic initiatives across many fronts. While these changes are essential to our evolution and growth however, we are mindful of the automation impact on jobs.

We appreciate their dedication and commitment to assist them in this change," TCS CEO K Krithivasan wrote in an email addressed to employees. Phil Fersht who is the CEO HfS Research, CEO HfS Research, said the impact of AI is affecting the model of services that is based on people and making it necessary for the big companies to shift their workforces to ensure they maintain their margins while remaining affordable in a competitive market where customers are looking for price reductions of 20-30% on deals.