TCS Layoffs 2025: A Powerful Caution for Senior Tech Professionals!!

TCS Layoffs 2025: A Powerful Caution for Senior Tech Professionals. 

Overview

Tata Consultancy Services (TCS), India’s largest IT services firm with over 600,000 employees as of March 2025, has announced one of its most significant workforce reductions yet: laying off around 12,000 staff, which is roughly 2% of its global employee base

Why This Matters

❗ Industry Shockwaves

TCS is often seen as synonymous with stability in Indian IT. A layoff at this scale—particularly affecting mid- and senior-level professionals—has raised serious concerns across the sector. 

CEO’s Explanation: Not AI, but Skill Misalignment

In a statement to Moneycontrol, CEO K. Krithivasan explicitly denied that the layoffs stemmed from AI-driven productivity gains. Rather, he framed the move as correcting a skill mismatch, especially in cases where reskilling did not lead to redeployment on emerging, tech-heavy projects. 

He clarified:

• AI is not the driving factor: “This is not because of AI giving some 20% productivity gains…”

• The issue arises when trained people remain un-deployable, particularly at senior levels

The Layoff Process: Structured and Compassionate

• It will roll out gradually across FY2026, not as a mass termination in one go. 

• A new bench policy mandates employees must bill at least 225 days per year—or face consequences, potentially termination, if bench time exceeds limits. 

• Affected employees are reportedly offered voluntary separation options—resign and receive ~3 months’ salary as severance; refusal means termination without severance.

• Krithivasan repeatedly emphasized a compassionate approach, including outplacement support, counseling, benefits, and respectful handling by HR and business leaders. 

Social Media & Employee Reactions

Platforms like X (formerly Twitter) have lit up with mixed reactions:

• Many warn senior professionals to stay current:
  “If you're 45 or approaching that age, surviving in the IT industry becomes increasingly difficult…”

• Some point out that unbillable managers become costly quickly:
  “When managers are not billable, they are huge cost to the company...”.

• Others question the fairness of a high CEO payout during major layoffs:
  Krithivasan earned ₹26.52 crore in FY 2025—leading critics to ask if executive pay should reflect corporate hardship. 

Broader Trends

• This move aligns with a broader downsizing wave in global tech—80,000+ layoffs across companies this year.

• Clients are demanding 20–30% cost savings, forcing providers to pursue automated, leaner delivery models and reconsider their workforce strategies.

• Training hundreds of thousands of employees has not fully solved deployment issues—senior staff often struggle to translate training into impactful roles.

Key Learnings

1. Stay deployable: Seniority alone isn't enough—keepers are those with continuously updated, high-demand technical skills.

2. Bench time matters: Policies linking tons of bench time to job risks indicate that staying active matters.

3. Corporate health doesn’t shield risk: Even profitable firms can make sweeping cuts to align with strategic priorities.

4. Prepare for transitions: Outplacement assistance helps—but having personal career buffers is wise.

Looking Ahead

• Over the next several months, TCS will phase out redundancies across regions and domains.

• The company promises no disruption in client deliverables, reflecting an effort at smooth execution under challenging circumstances .

• Observers will closely watch how competing IT firms respond: whether this triggers similar adjustments in workforce structure or strategic talent offerings.

Final Thoughts

TCS’s decision to let go of 12,000 employees—particularly higher-level managers—signals a major inflection point in the Indian IT story. It’s a wake‑up call to professionals: adaptability and deployability are just as critical as tenure and experience.