TCS Announces Steepest Job Cuts Ever Amid AI Shift and US Relations
Mumbai, India – Tata Consultancy Services (TCS), India’s largest private-sector employer and a global IT services giant, has announced its most significant round of job cuts to date, impacting nearly 20,000 employees. The move reflects a confluence of factors, including evolving US-India relations and a rapid acceleration in the adoption of artificial intelligence within the $280 billion Indian IT services sector.
According to TCS’s quarterly earnings presentation, the company reduced its workforce by 19,755 employees during the quarter ending September 30th.This figure encompasses both layoffs and voluntary departures. The reduction represents a 3.2% decrease in headcount from the previous quarter, bringing the total number of employees below 600,000 – a level not seen since the year ended March 2022.
The company has allocated 11.35 billion rupees (approximately $128 million) for severance-related costs in the reported quarter. This substantial provision underscores the scale of the workforce reduction.
the cuts come as TCS, like many other IT services firms, invests heavily in AI and automation technologies. The shift towards AI is driving a need for different skillsets, leading to redundancies in some areas while creating demand in others. Simultaneously, geopolitical factors and evolving trade dynamics with the United States are contributing to a more cautious approach to staffing levels.
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