Widespread forced resignations reported in the Indian IT industry have been followed with TCS layoffs reports. Such measures have shocked employees and industry analysts alike as Tata Consultancy Services (TCS) is one of the largest IT firms in the world – and signifies a long-standing point of stability in the Indian IT sector. Given the scale of the resignations and dismissals taking place, industry analysts have called into question the future of IT jobs in the Indian job market.
Forced TCS layoffs reports indicate the resignations and terminations of employees in many areas of the enterprise. The scale of these dismissals is causing great anxiety amongst the workforce as they will not be given the option of departing voluntarily.
Though precise metrics remain unverified, several sources suggest TCS layoffs are focused on mid-level and senior employees, as hundreds of such employees are in the scope of the layoffs. As the challenges of automation, cost-cutting, and shifting global client expectations continue to strain the IT sector, companies are increasingly realizing the need to exercise caution.
While the layoffs at TCS may be surprising, the company’s decisions are largely driven by the following:
Replacement of Manual Processes by Automation
Due to advancements in automation, artificial intelligence, and machine learning, a large portion of TCS’s traditional IT services are being automated, displacing a considerable number of employees. As demand continues to plummet on services, TCS has to downsize more aggressively.
Resource Allocation in Response to Global Economic Decline
There are still widespread global uncertainties around spending, inflation, and interest rates, as well as a retracting client spending. IT behemoths such as TCS are bearing the consequences of cost-control measures, which include personnel reductions to sustain the bottom line.
Defensive Business Restructuring
In order to defend its position in the market, TCS is undertaking substantial business restructuring. This has been accompanied by a sifting of resources in functions deemed excessive and less relevant within the strategic vision of TCS to yield forced resignations.
Performance-Based Exits
Some observed the dismissals at TCS as underperformance-related exits. While there is a lack of transparency in the assessment process, employees are being asked to resign voluntarily.
Ultimately, the TCS layoffs affect real people and entire families, in addition to the headlines. Long-term employees have been made to feel unappreciated and even forsaken.
Mental Health: The employees involved face the unrelenting emotional realities of layoffs, including resignation under duress.
Financial Strain: The repercussions of the TCS layoffs are made even more severe by EMIs, families to support, and inescapable inflation.
Identity Crisis: Losing a job at a company like TCS has created a sense of identity loss.
Suffering like this is TCS’s most painful legacy. Corporate decisions, made in the interests of the bottom line, have real-life, devastating consequences.
Automation, and the weak economy and market demand have brought job cuts, even in IT, and market players like Infosys, Wipro and the other IT market players have revised their hiring and recruitment expectations downward.
The trend of tech layoffs across the globe has reached India’s IT backbone, as seen with TCS. Google, Amazon, and Meta have let thousands go, and TCS is a telling sign of this trend hitting India.
Those affected by the TCS layoffs describe the experience as having little respect for ‘lifelong’ employees. Some employees described how they were asked, with little to no notice, to resign. More than a few were asked to ‘voluntarily quit’ for the sake of their ‘clean career record.’ When cost-cutting, senior employees and their benefits seem to be the target.
Emotionally and financially this is devastating for employees who have dedicated a significant amount of their careers to TCS, and in the past built the mentality of considering TCS, a “lifelong employer”.
The TCS layoffs raise the question, is the IT career still the ‘safe’ option? Demand is changing rapidly, and while the TCS layoffs have caused significant concern for the employees there is no stopping the growth of the industry. TCS laid off employees working with ‘traditional IT services’ which will, be replaced by the more profitable services like automation, cloud computing, AI and data analytics. This is the most significant gap in the industry and TCS laid off employees will have to focus on, reskilling in emerging as profitable IT career options like AI, data science, cybersecurity, and cloud. More than a few may also decide to return to freelance or contract work that offers ‘traditional’ IT services for more control and income flexibility.
Exploring Startups: Beyond Large Indian IT Firms.
The primary TCS layoff dilemma remains: how TCS earns back trust from employees. While TCS focuses on cost-cutting to appease shareholders, employees’ morale is losing. A company like TCS, renowned for stability, is now evasive on TCS’s circumstances.
For TCS to restore reputation, expect more honest communication, improve severance when TCS layoffs occur, and support reskilling laid-off employees.
The TCS layoff situation is under scrutiny from worker unions and government institutions. While India’s IT sector remains largely free from unions, calls for new and improved worker protections, in the form of anti-abandonment laws, are on the rise. These laws focus on severance that’s voluntary resignations as opposed to forced resignations.
Such discussions and laws will help TCS layoff employee processes and other IT job layoffs in the Indian sector.
Network Actively – Connect with peers, alumni, and join professional communities.
Upskill on Demand – Significant online course providers like Coursera, Udemy, and LinkedIn Learning teach courses in fast-moving fields.
Maintain Your Mental Health – Professional help and therapy groups are available for your mental health.
The TCS layoffs, while painful, can be an opportunity to shift the focus of your skills to the new skills needed in the economy.
The TCS layoffs are a warning that in a changing world, nowhere is your job, even in top IT companies, really protected. The company may say these layoffs are for better structuring and efficiency, but the pain these layoffs cause is human suffering and the company must acknowledge it.
The IT sector is changing and so do the employees in the sector. Learning, changing, and working are the only methods to protect your career. For TCS, the balance of corporate efficiency and the care for the people is the focus. This is the compassion to help the company to build the compassion and the balance to help the company build its legacy.
The TCS layoffs are linked to automation, global economic slowdown, performance exits, and restructuring for efficiency. These factors have reduced the demand for traditional IT roles.
Employees report being asked to resign suddenly, leading to financial stress, mental health struggles, and uncertainty about future job security.
Yes, in many cases, TCS layoffs are being perceived as forced resignations, where employees are told to quit voluntarily instead of being formally terminated.
Laid-off employees can focus on reskilling in AI, cloud, and data science, exploring startup jobs, freelancing opportunities, and negotiating fair severance packages.
Yes, the TCS layoffs reflect a broader trend in the IT industry, where automation and economic uncertainty are reshaping the demand for tech roles across India and globally.
