By Samannay Biswas
Copyright timesnownews
India’s largest IT services provider, Tata Consultancy Services (TCS), has addressed growing speculation regarding layoffs, firmly stating that the impact is limited to 2% of its global workforce, which translates to roughly 12,000 employees, far below circulating claims of 80,000. The clarification comes in response to alarming messages spread online and by some employee unions, notably the Union of IT and ITES Employees (UNITE), which suggested that actual job losses could be significantly higher. TCS stressed that these claims are “incorrect and misleading.” What Did TCS Say? According to official statements reported by ET Now, TCS confirmed, “The speculations are incorrect and misleading. The impact is limited to 2% of our workforce.” The company emphasized that these adjustments are part of a strategic restructuring plan rather than indiscriminate layoffs. Earlier this year, TCS announced that approximately 12,000 employees would be let go as part of efforts to revamp its workforce in line with AI integration and changing business priorities. These layoffs are designed to optimize roles and skills within the company, ensuring that its workforce aligns with emerging technologies and the evolving IT services landscape. Viral Rumours Trigger Panic Despite TCS’s clarification, misinformation had already created widespread panic. Social media posts claiming that 80,000 employees had been terminated went viral, leading to anxiety and uncertainty among staff. Such false information not only affects morale but can also impact productivity, as teams worry about the future of their positions. Layoff Packages and Employee Support TCS has detailed that layoff packages for affected employees range from 18 months’ salary to no pay, depending on tenure, seniority, and role. The company is working to ensure that impacted staff receive adequate support during this transition. Global Context: Tech Industry Workforce Restructuring The TCS layoffs are part of a broader trend in the global technology sector. Companies worldwide are adapting their workforces to new business realities shaped by AI, automation, and evolving client demands. Accenture recently announced over 11,000 job cuts globally, focusing on roles misaligned with future business priorities, while continuing to hire in high-growth areas.Microsoft has cut around 9,000 jobs this year as part of a broader restructuring, even while investing heavily in AI and automation initiatives. Experts note that workforce transformations in the technology sector are ongoing. The push towards automation, AI-driven solutions, and specialized technical skills is reshaping the structure of work. Many employees, not just at TCS, face uncertainty as companies adjust their staffing models to remain competitive in a rapidly evolving industry. TCS reassured employees and stakeholders that the company remains committed to strategic hiring in growth areas while optimizing workforce allocation. The goal is not mass reduction but alignment with new business priorities and technological advancements. As global tech firms navigate AI-driven disruption, TCS’s approach highlights the challenges and opportunities in balancing innovation, efficiency, and workforce sustainability. By clarifying the numbers and context, the company hopes to curb panic, support affected employees, and continue strengthening its position as India’s largest IT services provider.
