The Morning Brief Future Ready or Ruthless: Explaining TCS' Mass Layoffs
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Jul 29, 2025 Gaurav Vasu, founder of UnearthInsight, offers keen insights into the tech services landscape, while Beena Parmar, an Economic Times journalist, tracks the evolving IT industry. Together, they dissect the recent mass layoffs at Tata Consultancy Services, affecting 12,000 employees, attributed to a growing skills gap and AI disruption. They discuss how digital transformation is reshaping roles and highlight the broader implications for job security in the sector. The conversation also touches on the financial strains and shifting hiring patterns in a turbulent economic climate.
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TCS Workforce Shift Explained
- TCS is laying off 12,000 employees primarily due to a widening skills gap amid AI disruption and changing business needs.
- Mid and senior roles are targeted first because their skills no longer align with client demands and business models.
Bench Policy Tightening at TCS
- TCS is tightening bench policies, where employees idle over 35 days without projects face pressure or termination.
- Revenue drops and client demands for efficiency increase cost-cutting focus on employee utilization and margins.
Mid/Senior Roles Most Affected
- Layoffs are hitting mid and senior management due to AI efficiencies making many roles redundant.
- Employees without projects feel insecure as companies push project allocations for billable work.