Hitachi Group Affiliate Unveils State-Of-The-Art Chennai Hub
GlobalLogic, a Hitachi Group Company and leading provider of digital engineering services, has made …
10. October 2025
Tata Consultancy Services Unleashes Shockwave: 11000 Jobs Laid Off Amid Industry Turmoil
The Indian IT sector, a behemoth of the country’s economy, has been witnessing a significant shift in recent times. Tech giant Tata Consultancy Services (TCS), one of the largest private employers in India, has announced plans to cut over 11,000 jobs, marking a record high for the industry.
This move comes as a surprise to many, and experts are left wondering what prompted this drastic measure. TCS has been facing an unprecedented wave of challenges, including increased competition from low-cost countries, rising automation costs, and shifting client demands.
The company’s leadership is said to have made the difficult decision to restructure its workforce in order to remain competitive in the ever-evolving tech landscape. According to sources close to the company, TCS has been struggling to adapt to the rapidly changing demands of its clients.
Research firm Gartner reported that TCS has been struggling to keep up with the changing needs of its clients. “The Indian IT sector is facing significant headwinds, driven by a combination of factors including rising competition, automation costs, and shifting client needs,” said Krishnan Subramaniam, Vice President at Gartner.
While companies like TCS have historically been able to weather these storms, the current environment presents unique challenges that require bold action. The Indian government has also been cracking down on companies accused of violating labor laws and exploiting workers, highlighting the need for greater transparency and accountability within the industry.
TCS has long been a stalwart of India’s IT industry, with a reputation for delivering high-quality services to clients across the globe. However, the company’s fortunes have been changing in recent years. The layoffs are set to affect various departments within the company, including its application management services, infrastructure management services, and manufacturing operations.
The affected employees will reportedly be offered severance packages and outplacement support as part of the restructuring process. This move serves as a reminder of the importance of innovation, flexibility, and worker-centricity within the industry.
Industry sources suggest that the layoffs are significant due to their scale and impact on various departments. The decision to cut jobs is not without precedent, with several other major IT companies in India also announcing layoffs in recent years.
However, TCS’s move stands out due to its size and complexity. According to Pankaj Kumar, Research Director at the Centre for Policy Research, “TCS’s move is a wake-up call for the entire IT sector in India. The company must be held accountable for its actions and demonstrate a commitment to sustainable labor practices that prioritize worker welfare.”
As the Indian IT sector navigates this challenging period, experts are urging companies to take proactive steps to address the root causes of this trend. This includes investing in employee development programs, embracing digital transformation, and prioritizing worker well-being.
TCS’s move presents an opportunity for the industry to rethink its approach to work and talent. Companies must focus on building a culture of innovation and collaboration that empowers workers to thrive in an ever-changing landscape.
Sunit Sinha, Partner at McKinsey & Company, noted that “TCS’s move is an opportunity for the industry to prioritize worker well-being and invest in employee development programs. Companies must demonstrate a commitment to sustainable labor practices that prioritize worker welfare.”
The impact of this trend on the broader economy and society is complex and multifaceted. The future of work in India’s IT sector hangs in the balance, with companies facing significant challenges and opportunities.
Ultimately, the ability of companies like TCS to innovate, adapt, and put people at the heart of their operations will determine the future of work in India’s IT sector.