TCS Layoffs 2025: CEO Clarifies It’s Not About AI – Here’s What’s Really Happening

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Why Are the TCS Layoffs 2025 Happening?

The TCS Layoffs 2025 announcement came as a surprise to many. With 12,000 employees set to lose their jobs, the news has shaken the IT world. But what’s the real reason behind this massive workforce reduction?

TCS CEO K. Krithivasan has made it clear that AI automation is not the cause. Instead, the layoffs are attributed to:

  • A mismatch in skills for current projects
  • Inability to deploy staff in ongoing or future roles
  • A new and stricter bench policy
  • Broader strategic realignment due to tech disruption

These cuts are affecting employees across TCS’s global workforce of 613,000, making it the biggest layoff in the company’s history.

TCS CEO K. Krithivasan Breaks His Silence

In an interview with Moneycontrol, Krithivasan said:

“No, this is not because of AI giving some 20% productivity gains. This is driven by where there is a skill mismatch, or, where we think that we have not been able to deploy someone.”

He emphasized that TCS is still hiring and investing in new talent. But some roles simply can’t be matched with available projects, especially those involving legacy technologies or outdated skillsets.

The CEO called this the “toughest decision” of his career, but insisted it was necessary to make TCS “future-ready.”

Source: Moneycontrol – TCS Layoffs 2025

Who Will Be Affected by TCS Layoffs 2025?

TCS Layoffs 2025 will hit mostly mid and senior-level employees, especially:

  • Those with 10+ years of experience
  • Non-client-facing roles like project coordinators and support managers
  • Employees in legacy tech stacks
  • Entry-level staff who’ve stayed on the bench too long

The layoffs won’t be limited to India. Employees across the US, UK, and other global delivery centers are being affected.

TCS Bench Policy: A New Performance Standard

One major trigger for the TCS Layoffs 2025 is the company’s revised internal policy:

  • 225 billable days per year is now mandatory
  • Only 35 days of bench time allowed
  • Failure to meet this limit may result in termination and even denial of experience letters
  • In-office presence is compulsory for bench employees, along with daily upskilling hours

This move has created significant pressure on employees to stay billable or risk losing their jobs.

Is AI the Real Reason Behind TCS Layoffs 2025?

Many feared AI and automation were replacing jobs, but Krithivasan clarified that TCS Layoffs 2025 are not directly linked to AI. That said, AI and cloud technologies are reshaping roles, making certain traditional job profiles obsolete.

So while AI may not be causing these layoffs, it is indirectly influencing business strategy and the need for updated skills.

What Is TCS Offering to Affected Employees?

TCS has assured that the layoffs will be handled compassionately. The severance package includes:

  • Full notice period salary
  • Extended insurance coverage
  • Outplacement assistance
  • Career counseling
  • Additional three-month severance pay (in some cases)

“We’ll take care of it. We will do it in a very, very compassionate way,” Krithivasan promised.

Impact of TCS Layoffs 2025 on the Indian IT Industry

The TCS Layoffs 2025 reflect a larger trend in the IT sector. Companies are:

  • Shifting toward leaner, high-skilled teams
  • Adopting AI, cloud, and automation
  • Reducing bench strength to cut costs
  • Enforcing strict performance and utilization metrics

Other IT majors like Infosys and Wipro have already announced smaller layoffs. TCS’s decision may prompt further reshuffling in the industry.

Lessons from TCS Layoffs 2025: What Should IT Workers Do?

The layoffs send a clear message: Upskill or become obsolete. Here’s what IT professionals should do right now:

  • Learn AI, ML, Cloud, and Cybersecurity
  • Take certifications in trending tech
  • Keep an updated resume and LinkedIn
  • Track internal project movements and avoid extended bench time
  • Explore internal upskilling programs

TCS has trained over 550,000 employees in foundational skills and 100,000 in advanced digital roles, but the responsibility to remain employable also lies with the employee.

Conclusion

The TCS Layoffs 2025 are a wake-up call—not just for those affected but for the entire IT ecosystem. As TCS aims to stay competitive and future-proof, it must align its workforce with real-world demands.

This isn’t about AI replacing humans overnight. It’s about strategic restructuring, performance optimization, and realigning talent with new-age skills.

If you're in the tech industry, the takeaway is clear: Adapt or fall behind.