TCS set to fire 12,000 employees; Mass layoff fear grips IT sector

KOCHI: With profitability plummeting amid global uncertainties, leading companies in India are preparing to lay off employees en masse. TCS, the country's largest IT company, announced plans to lay off 2 per cent of its employees in the current financial year. The decision to give pink slips to 20,000 people comes after artificial intelligence outshining humans in the IT sector. TCS currently has 6.13 lakh employees.

TCS Chief Executive Officer K. Krithivasan said the decision was taken considering skill mismatch. He added that the use of artificial intelligence has led to a 20 per cent increase in productivity.

TCS is preparing to implement the change without disrupting services. TCS's decision to eliminate employees who cannot be redeployed within the organisation is creating serious concerns in the Indian IT sector. Experts point out this as the biggest strategic change TCS has ever made in its working method. Other leading IT companies in the country are likely to announce a similar decision in the coming days.

1. Employees in middle and senior positions who cannot be redeployed will be eliminated

2. The aim is to expand the market by focusing on innovative technologies

3. People with expertise in technology required in the foreign and domestic sectors will be retained

4. Increasing the use of AI and improving productivity are key considerations

Comprehensive package for laid-off employees

TCS is offering a comprehensive package to laid-off employees. Along with compensation, counselling and assistance in finding a new job will be provided. Insurance coverage will also be provided until a new job is found.

IT unions have already shown their disapproval of the layoff decision made by TCS.

IT unions termed the mass layoffs illegal. They have demanded that the decision be reversed and the employees be allowed to continue. The Forum for IT Employees urged the government to collectively oppose the new move from IT giants.

90,000 employees in 169 IT companies globally will lose their jobs this year.