TCS Layoffs 2025
Recent reports about TCS layoffs 2025 have sparked controversy, with the IT employees’ union UNITE protesting against what they claim are mass layoffs at Tata Consultancy Services (TCS). TCS announced a workforce reduction of approximately 2%, or around 12,000 employees, citing restructuring and skill mismatches. However, UNITE alleges that the actual number could be as high as 30,000 to 40,000. This article explores whether TCS management misrepresented the layoff figures, the role of AI and Global Capability Centers (GCCs) in these layoffs, and whether government intervention is likely.
TCS Layoff Claims: 12,000 or 30,000?
TCS recently stated it would lay off around 12,000 employees, approximately 2% of its workforce, primarily targeting senior and managerial roles. The company justified this as part of a restructuring effort to remove redundant roles and adapt to technological changes, particularly AI. However, the IT and ITES employees’ union UNITE claims that TCS layoffs 2025 could affect 30,000 to 40,000 employees, far exceeding the reported figure. This discrepancy has raised questions about transparency, especially given TCS’s robust financials, with a revenue of ₹2.55 lakh crore, a 25% profit margin, and ₹45,588 crore paid as dividends.
Union Protests and Allegations
UNITE’s protests, particularly in Chennai and other cities, highlight concerns about TCS layoffs 2025 impacting experienced employees. The union argues that TCS is replacing senior staff with freshers, who are hired at 80-85% lower salaries. This cost-cutting strategy, they claim, exploits the surplus of engineering and other graduates struggling to find high-paying jobs in a competitive market. Other IT associations are supporting UNITE, urging action against TCS and similar companies.
Role of AI in TCS Layoffs 2025
AI is often cited as a key driver of layoffs in the IT sector, and TCS layoffs 2025 are no exception. The company’s push to become a “future-ready organization” involves heavy investment in AI technologies, which may reduce the need for certain roles, particularly in repetitive or automatable tasks. Senior and mid-level employees, whose skills may not align with emerging AI-driven workflows, are reportedly the most affected. However, AI alone does not fully explain the scale of layoffs alleged by UNITE.
Impact of Global Capability Centers (GCCs)
Another significant factor in TCS layoffs 2025 is the rise of Global Capability Centers (GCCs). GCCs are in-house technology hubs set up by global companies in India to handle critical operations. For example, Commonwealth Bank, a prominent TCS client in the BFSI domain, reduced its TCS-assigned workforce from 2,500 to 500 employees after establishing its own GCC in India. These centers hire directly from TCS or other companies, offering higher salaries and opportunities in product-based environments. This shift reduces demand for TCS’s traditional outsourcing services, prompting layoffs across junior, mid-level, and senior roles.
Will the Government Intervene?
The scale of TCS layoffs 2025, especially if UNITE’s claims of 30,000-40,000 job cuts are accurate, could attract government scrutiny. India’s IT sector is a major employer, and mass layoffs could have economic and social implications. However, TCS maintains that the layoffs are part of a strategic restructuring, not arbitrary terminations. With other IT firms like Infosys and Wipro also facing similar pressures from AI and GCCs, government intervention would likely depend on coordinated action from unions and public outcry. As of now, no concrete government action has been reported, but protests by UNITE and other associations may push for regulatory oversight.
Challenges for Affected Employees
The TCS layoffs 2025 have created uncertainty for IT employees, particularly those in senior and managerial roles. Many face challenges in finding comparable high-paying jobs, with resumes often not shortlisted due to skill mismatches or market saturation. Freshers, willing to work at lower salaries, are replacing experienced staff, further intensifying competition. Employees are encouraged to upskill in AI-related fields and explore opportunities in GCCs to remain competitive in the evolving IT landscape.
Conclusion
The TCS layoffs 2025 highlight a complex interplay of corporate restructuring, AI adoption, and the rise of GCCs. While TCS officially reports 12,000 layoffs, UNITE’s claim of 30,000-40,000 raises concerns about transparency. AI is a significant factor, reducing demand for certain roles, but GCCs are equally responsible, as clients shift to in-house operations. Government intervention remains uncertain, but the protests signal growing unrest in the IT sector. For employees, adapting to new technologies and exploring GCC opportunities is crucial to navigate this challenging period.