Tech industry professionals in senior roles and management positions express concern following TCS layoffs; CEO implies senior positions are not immune from job cuts.
Tata Consultancy Services (TCS), India's largest IT services provider, has announced plans to lay off 12,000 employees, representing two percent of its workforce. This decision has raised concerns among mid and senior level IT professionals about their job security, as the layoffs primarily target middle and senior management positions.
In a statement, TCS CEO K Krithivasan explained that the layoffs are due to a "skill mismatch" and difficulties in redeploying certain employees within TCS's evolving business model. He emphasised that the layoffs are not triggered by Artificial Intelligence (AI) delivering productivity gains or automating roles but rather by the company's need to align its workforce with the skills required for its future-ready organization.
Krithivasan further clarified that while TCS has trained a large number of employees, with over 5.5 lakh trained in basic AI and 1 lakh in advanced AI skills, the reskilling has not always led to effective redeployment, particularly for senior professionals.
The layoffs will occur in a phased and compassionate manner, with affected employees being given notice, severance packages, extended insurance benefits, and outplacement support. The company is also implementing policies such as stricter billing day targets, affecting employees who are "on the bench" for extended periods, which contributes to this workforce rationalization.
The news of TCS layoffs has sounded alarm bells for senior employees in the tech industry. One user on the X platform compared the cost of a manager to that of five junior developers, highlighting the potential financial implications of these layoffs. Another user expressed concerns about the 'shelf life' of a techie in the IT industry, while Mohan Kumar suggested that many in these layers have stopped learning and have become pen pushers, increasing the risk of getting laid off.
Rohit Kumar Gupta, another X user, stated that survival in the IT industry becomes increasingly difficult for those aged 45 or older. The layoffs serve as a warning for mid and senior level IT professionals, according to Mohan Kumar.
However, it's important to note that Krithivasan has clarified that AI is not responsible for the workforce reduction at TCS. He emphasised that the evolving technological landscape—including AI adoption—has created a need for new skills that some middle and senior managers currently lack, leading to these reductions.
In conclusion, while AI's role in these job cuts is indirect, the shifting tech industry landscape necessitates a focus on continuous learning and adaptability for IT professionals to secure their careers.
- TCS, India's largest IT services provider, is laying off 12,000 employees, primarily targeting middle and senior management positions.
- The layoffs are due to a "skill mismatch" and difficulties in redeploying certain employees within TCS's evolving business model.
- Although over 5.5 lakh employees at TCS have been trained in basic AI and 1 lakh in advanced AI skills, the reskilling has not always led to effective redeployment, particularly for senior professionals.
- The layoffs will be done in a phased and sensitive manner, offering severance packages, extended insurance benefits, and outplacement support to affected employees.
- AI's role in these job cuts may be indirect, but the ever-changing technological landscape highlights the necessity for IT professionals to prioritize continuous learning and adaptability for career development and job security.
