Future-Ready Transition: TCS Announces Major Workforce Realignment

The Ministry of Information Technology is closely monitoring developments at Tata Consultancy Services (TCS) following the company's announcement to lay off over 12,000 employees. The IT Ministry is providing keen oversight, acknowledging employment growth as a primary concern and emphasizing the significance of initiatives like Employment Linked Incentive to boost job creation, as per sources.

With a keen focus on skilling and reskilling, the ministry is in dialogue with TCS to understand the reasons behind this decision. The layoffs constitute approximately two percent of the company's global workforce, mainly impacting middle and senior grade employees, as TCS pursues its broader strategy to establish itself as a 'future-ready organization'.

This strategic pivot includes investments in cutting-edge technology, artificial intelligence deployment, market expansion, and a comprehensive workforce realignment. TCS plans to offer appropriate benefits, outplacement, counseling, and support services to alleviate the transition for affected employees, as confirmed in a statement on Sunday.

(With inputs from agencies.)