TCS Layoffs Signal Shift in IT Landscape Amid AI Rise
TCS, India's largest IT services company, announced a staggering 12,000 layoffs due to growing automation and AI adoption. Despite this, the company's workforce saw fluctuations, peaking in FY23. Analysts note increased pressures from AI, pushing firms to maximize efficiency amidst evolving client demands and macroeconomic challenges.
- Country:
- India
Tata Consultancy Services (TCS), India's leading IT services giant, is preparing to lay off 12,000 employees this year, as artificial intelligence (AI) and automation begin reshaping the industry. Despite TCS's workforce peaking at 6.14 lakh in FY23, employment has seen a downturn due to technological shifts.
Analysts observe that the move underscores broader strategic realignments triggered by client demand for outcome-oriented and cost-efficient service models. Tarun Pathak, Research Director at Counterpoint Research, emphasizes that TCS's decision highlights ongoing troves toward optimized, AI-driven workflow frameworks.
The industry's thrust towards AI underscores a shift in skill demands, as businesses strive for agility amidst market unpredictability. As AI continues to influence job structures, companies, including TCS, are investing in employee upskilling. However, layoff concerns among IT professionals persist, sparking debates across social media.
(With inputs from agencies.)
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