TCS Layoffs Spark Fears Of Industry-Wide IT Job Cuts Amid AI Disruption and Margin Pressures

Brief by Shorts91 NewsDesk / 05:55am on 29 Jul 2025,Tuesday Tech Today

Tata Consultancy Services (TCS) will lay off 12,000 employees, 2% of its global workforce marking one of its largest retrenchment drives. Experts warn this move could trigger similar actions across India’s IT sector. The layoffs, targeting mid- and senior-level roles, stem from margin pressures, AI disruption, and skill mismatches. Analysts say the traditional service delivery model is being replaced by leaner, AI-driven structures. TCS’s updated HR policy mandates 225 billable days and limits bench time to 35 days. While TCS claims the cuts aren’t AI-driven, industry voices disagree. The shift reflects a broader transformation toward “services-as-software”, with reskilling and agility now critical for survival. (PC: Sci Tech Daily & Mint)

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