The Changing Reality of Job Security in Indian IT: A Close Look at TCS and Its Peers

For decades, Tata Consultancy Services (TCS) stood out not just as India’s IT bellwether, but as a company where job security was nearly legendary. Layoffs at TCS were rare and generally limited to small-scale, performance-based exits. For instance, in FY2015, just 2,574 employees—about 0.8% of the workforce—were let go due to “involuntary attrition” linked to performance and restructuring rather than any large-scale culling.

Fast forward to 2025, and the story has dramatically changed. TCS announced its largest-ever layoff drive, axing around 12,000 jobs (roughly 2% of its global workforce of 613,000)—with most impacted employees being in mid-to-senior level management or extended bench time. Notably, this move came despite aggressive reskilling initiatives (5.5 lakh trained in basic AI, 1 lakh in advanced AI). TCS attributed these cuts not to AI automation per se, but to skill mismatches and the shift from traditional waterfall delivery models to agile, product-centric teams. Cost pressures and new, stricter benching policies (non-project days now limited to 35 per year) further accelerated the reduction.

How Does This Compare to Other Indian IT Giants?

Job security was once a selling point for nearly all major Indian IT firms. But recent years have seen that myth dispelled:

HCL Technologies: Headcount fell by over 8,000 in Q1 FY25 alone, with layoffs continuing into Q2 and “secret” bench reductions reported across multiple deals.

Infosys: With hiring freezes, deferred onboarding, and stringent performance criteria, even trainees have faced contract terminations.

Wipro and others: Similar patterns emerge—mandated upskilling drives, variable pay cuts, and bench shrinkage have become standard for survival.

What’s Driving These Layoffs?

AI & Automation: Routine, repetitive roles—especially in development, QA, and support—are being automated, shrinking opportunities for those with legacy-only skills.

Changing Client Demands: Global clients now demand higher value and innovation, leaving less room for redundant staffing and legacy delivery models.

Margin & Cost Pressures: Economic headwinds and client pushbacks on pricing are forcing companies to “do more with less,” leading to a relentless focus on billability and utilization.

Skill Mismatch: The transition to new tech stacks and “agile” models leaves many seasoned professionals at risk if they haven’t kept up with evolving skills.

How to Prepare for This New Era

Gone are the days when tenure was a guarantee of job security in Indian IT. Here’s what professionals can do:

Embrace continuous learning: Upskill in emerging technologies like AI, cloud, cybersecurity, and product management.

Pivot to value-adding roles: Move towards client-facing, solution-oriented, or domain specialist roles that resist easy automation.

Stay adaptable: Be open to cross-functional and project-based assignments.

Maintain a professional network: Proactive connections can help navigate transitions more smoothly.

The message is clear: the Indian IT sector is reinventing itself, and so must its workforce. Job security now lies in adaptability, proactive upskilling, and readiness to ride the next technology wave.

Impact of Layoffs: A Deeper Dive into What’s Happening at TCS and Across Indian IT

The scale and speed of layoffs in the Indian IT sector this year have been unprecedented. TCS alone reduced its workforce by approximately 12,000 employees, When combined with peers like Infosys, Wipro, and HCL, over 42,000 jobs have been cut in just the last two years.

Impact on Generations

Older Generations:

Experienced professionals bear the brunt of these shifts. Many struggle with reskilling as their expertise is often rooted in legacy systems and waterfall models. The layoffs have disrupted long-held notions of job stability, causing concerns around career continuity, financial security, and retirement planning. These changes are creating significant stress, career uncertainty, and require strategic pivots into emerging roles like innovation leadership or mentoring.

Younger Generations:

Newer entrants face hiring freezes, deferred onboarding, and tough contract renewals. While routine roles are automated or offshored, opportunities are opening up in AI, cloud, and cybersecurity for those who upskill fast. Early-career professionals must be nimble, embracing lifelong learning and agile practices to remain relevant in a transformed IT landscape.

Broader Organizational and Industry Effects

The loss of senior mentors impacts knowledge transfer and the development pipeline for new talent.

Employer brands are tested, with layoffs generating trust issues and increased employee anxiety.

These measures, while disruptive, are strategic responses to margin pressures, evolving client demands, and the urgent need to leverage AI and automation for competitive advantage.

Economically, these layoffs affect not just individuals but also local communities dependent on IT spending, heightening the importance of industry and government collaboration on reskilling and social safety nets.

What Can Professionals Do?

Older professionals: Proactively upskill in emerging tech, pivot towards leadership and mentoring roles, and build adaptable career strategies.

Younger professionals: Prioritize in-demand digital skills, foster agility, and align early career moves with future tech waves.

All: Build strong networks and embrace continuous learning as a career imperative.

The Indian IT sector’s restructuring signals both challenge and opportunity. Success belongs to those ready to evolve continuously—professionals and firms alike.