India’s largest IT services company, Tata Consultancy Services (TCS), has announced plans to lay off nearly 12,000 employees this fiscal year. The move comes at a time when artificial intelligence (AI) is rapidly reshaping the technology industry. Along with TCS, other major companies like HCL Technologies and Wipro are also planning significant workforce changes. These developments signal a deep transformation in how India's IT sector is adapting to the rise of AI.
Automation and AI
TCS stated that the job cuts are part of a broader strategic shift. The company is aiming to become what it calls a “future-ready organization.” This includes investing in new markets, expanding AI-based services, and building deeper partnerships with clients. As a result, the company is adjusting its workforce model.
The cuts will mainly affect senior and middle-level employees. These are professionals who have spent years in the industry but whose roles are now being changed or replaced by AI-powered tools. The company said that around two percent of its global workforce will be impacted, mostly over the next year.
TCS recently concluded the first quarter of the fiscal year with over 613,000 employees. If 12,000 are laid off, that represents a significant move. Reports suggest that in recent weeks alone, around 100 employees have already been asked to leave, especially from the Bengaluru office.
AI Changes the Game
This decision by TCS is not happening in isolation. It comes about two and a half years after the launch of AI tools like ChatGPT, which have drastically improved automation, especially in coding and customer support. These technologies are making many jobs redundant, especially those involving repetitive or rule-based tasks.
According to industry experts, AI is forcing IT companies to rethink their traditional workforce models. Clients now expect faster and cheaper services, which means companies have to maintain their profit margins while delivering more. AI tools help do exactly that by reducing dependence on human labor for routine tasks.
Phil Fersht, CEO of HFS Research, noted that this trend of AI-driven restructuring is likely to continue for at least another year. He added that companies are trying to retain jobs that involve innovation and problem-solving, while automating the rest.
Wipro and HCL Follow Suit
Wipro, another IT major, is also making moves that could affect its workforce. It has recently asked some senior employees to take English communication tests. Those who fail may face demotions or even job loss. This performance review process is part of a new company-wide initiative aimed at improving client-facing communication and productivity.
Meanwhile, HCL Technologies is reportedly planning to lay off some of its fresh graduates. These are employees who have recently joined but are not yet trained or deployed into projects. According to CEO C. Vijayakumar, the company is now focusing more on hiring individuals with specialized AI and software skills. He added that HCL is moving away from hiring large numbers of generalist graduates, as that model no longer meets the demands of today’s tech industry.
Indian Professionals
These developments should serve as a wake-up call for India’s tech workforce. The traditional model, where employees worked for years in one role with little need for upskilling, is fast disappearing. Companies are now rewarding adaptability, strong communication, and technical skills in areas like AI, data science, and cybersecurity.
Job seekers and current employees alike need to understand the urgency of upskilling. Those who are stuck in routine roles or lack the ability to work with newer technologies may find themselves at risk. Even experienced professionals are not safe if their skills are not aligned with the changing needs of the industry.
Pragmatic Approach
For professionals, the first step is awareness. Understanding how AI is impacting job roles is crucial. Next comes action. Workforce must actively seek training in emerging technologies and communication skills. Many online platforms offer affordable certifications in AI, machine learning, and cloud computing. Companies, too, should invest in reskilling their workforce instead of simply laying them off.
For students planning a career in IT, the message is clear. Strong fundamentals in coding are no longer enough. The ability to think critically, solve real-world problems, and communicate clearly will be just as important.
Final Take
The recent decisions by TCS, Wipro, and HCL are not temporary adjustments. They are early signs of a long-term shift driven by artificial intelligence. India’s IT professionals must now prepare themselves for a new kind of workplace that demands continuous learning, adaptability, and the courage to evolve. Failing to adapt it may be left behind.
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