Tata Consultancy Services (TCS) is undergoing its largest workforce reduction, influenced by strained US relations and the rapid integration of artificial intelligence within the IT sector. While TCS acknowledges a reduction of approximately 6,000 roles, mainly among mid and senior-level employees, employee unions claim the actual figures are much higher.
The company attributes these changes to skills realignment, while unions describe it as displacement. TCS is investing $6.5 billion in AI data centres, signalling a shift from labour to compute. Severance expenses of ₹1,135 crore indicate a significant restructuring effort beyond typical employee turnover.
Despite the job cuts, TCS maintains it is honouring existing job offers and will continue hiring based on demand. The company aims to balance workforce skills with emerging technological demands, particularly in AI, cloud computing, and product development.
