The recent uproar surrounding Tata Consultancy Services’ (TCS) alleged 30,000 job cuts is now being viewed as a symptom of a broader transformation gripping the global IT services industry. According to analysts, automation, AI integration, and shifting client demands are forcing even legacy giants like TCS to rethink their workforce strategies.
The IT Employees Association of India (ITEAI), which raised alarms about the mass layoffs, is preparing to organize global protests and submit petitions to labor regulators in India, the UK, and the U.S. Their main allegation is that TCS is “disguising layoffs as performance-based exits” to avoid media scrutiny and legal implications.
However, analysts believe the layoffs reflect more than corporate opacity — they point to structural changes in the way IT services are delivered.
“The traditional pyramid model of hiring thousands of freshers and training them for support roles is being replaced by lean, AI-assisted delivery models,” said tech consultant Priya Kalra. “The layoffs may be poorly handled, but they were inevitable.”
TCS is not alone. Infosys, Wipro, and even international firms like Accenture and Capgemini have reported workforce reductions over the past year, citing the same shift toward automation and cost optimization.
The ITEAI has called for better retraining support and regulation in light of this change. “If AI is the future, we need a national reskilling mission. Otherwise, millions will be left behind,” said union spokesperson Ritesh Nair.
TCS, meanwhile, has said it is investing heavily in GenAI capabilities and has launched internal retraining programs — though critics argue they have not reached mid- and senior-level staff, who form the bulk of those reportedly let go.
