Tata Consultancy Services (TCS) is to reduce around 12,000 jobs around the world, about 2% of their workforce, in what is called one of the largest causes of the company. The main IT, however, explained that the decision has nothing to do with artificial intelligence replacing jobs.
In an interview with MoneyControlThe CEO of TCS to Kitrithivasan refused to speculate that the transfer of productivity led by AAA-LED said, and stated that cuts were caused by the disagreement and inability of the company to move certain employees to their developing business model.
“This is not because AI provides approximately 20 % of productivity gains. It is driven by where there is a mismatch of skills or where we think we were unable to deploy someone,” crithivasan said.
Why layoffs?
Reduction of tasks, which will be held gradually through FY26, will mainly affect medium level employees, although some junior employees can also be influenced on the prolonged “time on the bench”, who are currently not deployed in any project-Mohn.
While the TCS significantly invested in Uis-Kllieling and training, including more than 5.5 lakh training in the basic AI and more than 1 lakh into advanced skills, the company recognized that reserchilling has not always led to re-employment, especially for higher professionals.
“Some people, especially at higher levels, are difficult to switch to technologically demanding roles,” admitted the CEO.
Change of work model
The company is also undergoing a structural shift-the traditional management method of the “waterfall” project is moving to a more agile model aimed at the product. This change has reduced the need for conventional project and program managers.
“Previously, we had several layers of lines in the waterfall models. This is changing,” Crithivasan explained.
“Difficult but necessary”
Crithivasan acknowledged that the decision was difficult and unprecedented, and made sure that TCS could handle the release of “very, very compassionate”.
The company will offer severance payments, extended health insurance, mental health counseling and outplacement support.
At the same time, the TCS stressed that it remains focused on the future and will continue to hire high -quality talent.
“This is not a question of demand. It’s about being ready for the future,” crithivasan added.
(Tagstotranslate) TCS Cut Cut
