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TCS Layoffs Shatter Perception of Job Security in Indian IT Sector

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The recent announcement by Tata Consultancy Services (TCS) to lay off 12,200 employees—roughly 2% of its global workforce—has sent shockwaves through India’s IT industry.

Once considered a bastion of job stability, TCS is now at the center of a broader reckoning about employment security, especially for professionals over the age of 45.

The layoffs, scheduled to be completed by March 2026, primarily target mid- and senior-level employees, particularly those in legacy technologies, non-client-facing roles, and project management positions that are increasingly seen as misaligned with the company’s evolving delivery model.

“We Thought TCS Was Like a Government Job”

The restructuring has prompted emotional responses from industry veterans.

Abhishek Sur, a Kolkata-based tech professional, captured the sentiment in a widely shared LinkedIn post.

In the post he stated, “Once, we thought TCS was like a government job—stable, secure, and lifelong. But times have changed.”

Abhishek added, “AI is reshaping industries, and no one is immune—not even the giants.”

This view reflects a generational shift in expectations. For years, employment at top-tier IT firms like TCS was equated with long-term security.

The current layoffs have disrupted that narrative, revealing vulnerabilities even among experienced professionals.

Wealth Advisor’s Warning: “45 Is the New 60”

The impact of the layoffs extends beyond the tech sector.

Kanan Bahl, a wealth advisor, issued a stark warning on LinkedIn, “If a Tata group company can lay off 12,000 employees, you better be prepared. 45 is the new 60.”

He urged professionals to rethink their financial planning and career trajectories. His recommendations include:

  • Building a 12-month emergency fund
  • Securing personal health and term insurance beyond employer coverage
  • Upskilling continuously, especially in AI and emerging technologies

He emphasized that job losses are not caused by AI itself, but by individuals who fail to adapt, “People are not losing jobs to AI. They’re losing jobs to those who are using AI.”

Structural Shifts in Indian IT

The layoffs at TCS are part of a broader pattern of structural upheaval in India’s IT sector.

Companies like Wipro have introduced performance-linked communication tests for senior staff, while HCLTech has begun offloading entry-level workers displaced by automation.

TCS has also revised its bench policy, limiting unassigned time to 35 days per year, which has increased pressure on employees to find billable roles or face exit.

The company maintains that the layoffs are not driven by AI productivity gains but by skill mismatches and deployment challenges.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus