IT Sector Workforce Transformation: Nasscom Flags Skills Reset as TCS Plans 12,200 Job Cuts

India's IT sector faces an unprecedented workforce transformation as traditional skills become obsolete. With major companies restructuring their talent base, the industry body Nasscom has issued critical warnings about upcoming changes in employment patterns.

TCS Announces Workforce Reduction Amid Skills Gap

Tata Consultancy Services plans to cut 12,200 jobs across FY26, representing 2% of its 613,000 global workforce. CEO K Krithivasan cited increasing skills gaps and challenges in redeploying mid and senior-level employees amid rapidly evolving technological demands.

The company reported an attrition rate of 13.8% in Q1 FY26, up from 13.3% in the previous quarter. TCS associates invested 15 million hours building expertise in emerging technologies, with 114,000 people now possessing higher-order AI skills.

Attrition Rates at Major IT Firms Like Infosys, Wipro, and HCL Tech

Major IT firms are experiencing rising attrition rates as the sector adapts to changing market dynamics. Infosys recorded 14.1% voluntary attrition in Q4 FY25, while Wipro reported 15.3% attrition rates, showing consecutive quarterly increases. HCL Technologies maintained 13.2% attrition. 

Read More: TCS to Layoff 12,000 Employees, or 2% of its Workforce, Due to Skills Gap and Shifts in Technology!

Nasscom Calls for National Level Skills Collaboration

The industry body emphasised that AI and automation integration is fundamentally changing service delivery models. Over 1.5 million IT professionals have completed AI and GenAI training, with 95,000 employees acquiring advanced AI certifications in cloud and embedded technologies.

Nasscom stressed the need for collaboration between industry, academia, and government to bridge the digital skills divide.

TCS Share Price Performance

On July 29, 2025, TCS share price opened at ₹3,060 on NSE, below the previous close of ₹3,079.30. During the day, it surged to ₹3,074.00 and dipped to ₹3,041.20. The stock is trading at ₹3,044.90 as of 12:35 PM. The stock registered a decline of 1.12%.

Over the past week, it has declined by 4.22%, over the past month, it has declined by 10.92%, and over the past 3 months, it has declined by 11.23%.

Conclusion

The IT sector transformation highlights the urgent need for skills realignment as traditional roles give way to AI-driven capabilities. With rising attrition rates across major firms and strategic workforce reductions, the industry must prioritise upskilling to maintain global competitiveness.

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