TCS is laying off 12,000 employees — but not because of AI. Learn why skill mismatch, agile transformation, and future-readiness are reshaping India’s IT workforce.
“If not AI, then why?”
This isn’t about robots replacing coders overnight. It’s about a changing business model, evolving skills, and a growing mismatch between legacy expertise and future needs.
Let’s decode what’s really happening behind the headlines and what Indian professionals — whether you’re a developer, manager, or fresher — must understand to thrive in this transition.
🔍 Why Is TCS Laying Off 12,000 Employees?
Not AI. It’s Skill Mismatch.
TCS CEO K Krithivasan made it clear: the layoffs are not driven by AI productivity or cost-cutting for automation. The issue is skill mismatch — especially among mid-to-senior professionals who haven’t transitioned into agile, tech-forward roles.
“This is not because of AI giving some 20% productivity gains. It’s where we have not been able to deploy someone,” – Krithivasan
What You Should Remember:
Skill mismatch — not AI — is the primary trigger. Companies are evolving faster than some employees are re-skilling.
📉 The Shift from “Headcount” to “Outcome”
Gurnani’s Wake-Up Call
CP Gurnani, former CEO of Tech Mahindra, summarized it bluntly:
“The era of ‘Kitne aadmi the?’ is over.”
Traditionally, IT service companies were judged by their headcount. Bigger teams = more power. But now? It’s outcome over manpower. Clients care about efficiency, speed, and innovation — not how many employees you’ve staffed.
Think of it like this:
- Old Model: IT projects were like government contracts — bloated teams, hierarchical execution.
- New Model: It’s a startup sprint — lean teams, skilled execution, measurable outcomes.
What You Should Remember:
Output is king. You’ll no longer be valued just for being present — you’ll be valued for what you produce.
🧠 Reskilling: Not Enough Anymore?
Training ≠ Transformation
TCS has invested heavily in training:
- 5.5 lakh+ employees trained in basic AI
- 1+ lakh trained in advanced AI skills
Yet, many trained employees weren’t re-deployed.
Why?
Because reskilling must lead to relevance, not just certification. Especially for senior roles, the leap from managing people to doing hands-on AI or data-driven work is not easy.
“Some senior professionals find it difficult to transition,” – Krithivasan
Many confuse attending a webinar or finishing a course with becoming job-ready. But in the real world, it’s about application, adaptability, and value delivery.
What You Should Remember:
🔄 Agile > Waterfall: The Structural Shift
From Managers to Makers
Earlier, large IT firms like TCS had multiple layers of project managers, delivery heads, and coordinators. The waterfall model needed them. But today?
Agile methodologies — where cross-functional teams own a product from end to end — are flattening these layers.
That means:
- Fewer people coordinating.
- More people coding, testing, shipping.
- Managers must now be player-coaches — not just supervisors.
“Earlier, in waterfall models, we had multiple leadership layers. That’s changing,” – Krithivasan
Indian Analogy:
Think of cricket. Earlier, you had a captain, vice-captain, multiple advisors. Now, in T20 formats, everyone must be an all-rounder. If you can’t bowl or bat, you’re off the team.
What You Should Remember:
The age of “managing work” is fading. You must be able to do the work yourself — or risk becoming irrelevant.
🌊 The Reality of Churn: Get Ready for 3 Years of Shake-Up
Ganesh Natarajan, Executive Chairman of GTT Data Solutions, put it sharply:
“Over a million jobs will get redundant… testing, documentation, programming roles… will be replaced.”
But at the same time:
“More roles will be created — AI engineers, prompt engineers, data specialists.”
We’re in the middle of a tech churn. The next 2–3 years will see constant role reshuffling, team restructuring, and redefined job titles.
Just like mobile phones replaced landlines, AI will collapse departments, flatten org charts, and redefine what value means in the workplace.
What You Should Remember:
There will be job losses — but also new opportunities. Be flexible. Be willing to start small in a new domain.
🧩 Emotional Truth: This Is Not Just About Skills
Behind every layoff is a person — a livelihood, a family, a future. And TCS, to its credit, is offering:
- Severance packages
- Extended health insurance
- Mental health support
- Outplacement assistance
But the truth is, for many employees — especially those with 10–15 years in the same company or role — the shift feels like an identity crisis.
“Who am I if I’m no longer a Delivery Head?”
“What do I even do now?”
“Am I too old to learn prompt engineering?”
These questions aren’t technical — they’re deeply human.
What You Should Remember:
Upskilling starts in the mind, not the machine. Mindset — not just modules — determines your ability to pivot.
🎯 The Future Is Already Hiring
Despite the layoffs, hiring is not slowing. In fact, job openings in data science, cybersecurity, cloud, and AI have grown year-over-year across Indian IT giants.
Why? Because:
- AI needs data to function
- Businesses need secure, integrated platforms
- Clients want end-to-end product development
Hot Roles Emerging in India:
- Prompt Engineers
- AI Trainers
- Data Analysts
- Cloud Platform Architects
- Product Owners with Tech Background
And it’s not just TCS. Infosys, Wipro, Accenture, and startups across India are rebuilding tech teams to suit the product-first world.
🧠 Final Takeaway: Adaptation > Anxiety
Yes, the TCS layoffs are alarming. But they’re not arbitrary. They signal a paradigm shift in how the Indian IT industry works — and what it expects from you.
🎯 No role is future-proof — but every mind can be.
If you stay curious, upskill deeply, and align your output with business outcomes, you won’t just survive this churn — you’ll thrive in it.
Why is TCS laying off employees?
Due to skill mismatch and structural changes, not because of AI replacing jobs.
Is AI the reason for TCS layoffs?
No. TCS clarified AI is not driving the cuts; it’s about deployment challenges.
Who will be most affected by TCS layoffs?
Mid-to-senior level professionals with outdated skills or prolonged bench time.
What roles will be in demand after this shift?
AI engineers, data scientists, prompt engineers, and cloud specialists.
How can employees prepare for such disruptions?
Upskill deeply, embrace product roles, and shift to outcome-based thinking.