Business affiliation, NASSCOM, mentioned in an announcement that it anticipates extra layoffs within the IT sector within the close to time period. This comes after TCS introduced that it will lay off 2 per cent of its workforce, which is actually 12,000 staff.
“The tech trade is at an inflection level, as AI and automation transfer to the very core of how companies function. Over the subsequent a number of months, we anticipate some transitions as organisations pivot towards product-aligned supply fashions, pushed by rising consumer expectations round agility, innovation, and velocity. This shift is prone to reshape conventional service supply frameworks and, within the close to time period, could result in some workforce rationalisation as conventional skillsets are re-evaluated,” it mentioned.
TCS has not solely determined to put off, it has additionally reportedly frozen lateral hiring and suspended annual wage will increase throughout international markets. Social media has been abuzz, with many stating how this spherical of layoffs from one of many largest IT firms has shattered the picture of stability within the sector.
Nonetheless, NASSCOM has mentioned that know-how would stay a strong catalyst in the long term. “Each wave of disruption brings new roles, new worth chains, and new alternatives. As industries evolve, steady skilling, upskilling, and cross-skilling might be crucial to constructing future-ready, resilient workforces,” it mentioned.
The physique mentioned that the journey to upskilling staff within the sector has already commenced with over 1.5 million professionals having been educated in AI and GenAI abilities throughout ranges as of the fourth quarter of FY25. Superior AI skilling initiatives, together with AI-native cloud, embedded AI, and utilized intelligence certifications, have touched greater than 95,000 staff, it mentioned.
“Hiring developments will proceed to evolve, with rising demand for deep, specialised experience. There isn’t a one-size-fits-all answer, every enterprise will navigate this transition based mostly on its distinctive strategic wants,” the trade physique mentioned.
TCS has reportedly communicated its choice to freeze hiring by means of an inside electronic mail citing geopolitical tensions, weak demand, and macroeconomic uncertainty. The hiring freeze and delays in mission onboarding, which now reportedly exceed 65 days for knowledgeable hires. Internally, TCS is claimed to be phasing out lots of of benched staff in cities equivalent to Hyderabad, Pune, Chennai, and Kolkata. Beneath a brand new coverage, staff should discover a mission inside 35 days or face termination.
Jefferies, in a current analyst be aware, known as TCS layoffs and hiring freeze a “canary within the coal mine” second. The agency famous that layoffs and hiring freezes replicate weak demand and rising prices, warning that firms unable to adapt to AI-led fashions could face comparable challenges.
