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‘As AI, automation move to very core of businesses…’: NASSCOM anticipates more IT layoffs after TCS

The Industry Association, Nasscom, said in a statement that it expects more demobilization in the information technology sector in the short term. This comes after TCS announced that it will do 2 percent of its working power, which is basically 12,000 employees.

“The technology industry is at a turning point, where artificial intelligence and automation move to the essence of how companies work. During the next few months, we expect some transformations as axial organizations towards the mode of conversation service, driven by the increasing customer expectations about shock and speed. It was re -evaluated.

TCS not only decided to get rid, but it may freeze side employment and suspend annual increases in salaries in global markets. Abuzz, as many mentioned how this tour of the demobilization of workers from one of the largest information technology companies has shattered the image of stability in the sector.

However, Nasscom said technology will remain a strong incentive in the long run. She said: “Every wave of turmoil brings new roles, new value chains and new opportunities. With the development of industries, continuous skills, compensation, and intense mockery will be crucial to building a ready -made workforce in the future and flexibility.”

The authority said that the journey to raise workers in this sector has already begun with more than 1.5 million professionals who were trained in the skills of artificial intelligence and gender across levels from the fourth quarter of the fiscal year 25. She said that the initiatives of advanced artificial intelligence skills, including the original cloud of artificial intelligence, artificial intelligence, and applied intelligence certificates, touched more than 95,000 employees.

The Industry Authority said: “Employment trends will continue to develop, with increasing demand for specialized deep experience. There is no single solution that suits everyone, each institution will transfer this transition based on its unique strategic needs.”

TCS is said to have informed its decision to freeze employment via an internal email, cited by geopolitical tensions, poor demand and total economic uncertainty. Freezing employment and delay in the Onboarding Project, which now exceeds 65 days for experienced appointments. Internally, TCS is said to give up hundreds of fighter staff in cities such as Hyderabad, Bion, China and Colkata. Under a new policy, employees must find a project within 35 days or end the face.

Jefferies, in a recent analytical memo, is called TCS and the “Canary in the Coal Mine”. The company noted that workers ’layoffs and employment operations reflect poor demand and increasing costs, warning that companies are unable to adapt to artificial intelligence models that may face similar challenges.

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2025-07-29 07:40:00

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