TCS CEO Krithivasan Clarifies 12,000 Job Cuts Are Not Driven by AI

Tata Consultancy Services (TCS) is undertaking a workforce reduction of 2%, amounting to almost 12,000 jobs globally, as per news reports. CEO K Krithivasan has firmly dismissed artificial intelligence as the reason, attributing the cuts instead to skill alignment and deployment challenges.

Skill Gaps and Deployment Feasibility Prompt Job Cuts

K Krithivasan clarified that the 2% layoff initiative is not a result of automation or AI-led efficiency. The decision was made due to employee skill mismatches and a lack of viable redeployment opportunities. According to him, while TCS continues to invest in acquiring and training talent, some roles could not transition beyond basic upskilling levels, especially at the senior level.

Who Will Be Affected by the Reductions?

The layoffs will most significantly impact middle and senior management positions. Some entry-level employees who have remained unassigned for extended periods are also part of the reduction. The initiative will span multiple geographies and domains over the next three quarters of FY26.

Training Statistics and Redeployment Challenges

TCS reportedly trained approximately 550,000 individuals in initial technical skills and over 100,000 in advanced capabilities. Despite this large-scale training initiative, the organisation found it difficult to advance certain employees beyond basic expertise levels. This indicates a bottleneck in skill progression rather than a lack of training effort.

Read More: Tech Job Cuts: Intel to Cut 25,000 Jobs, Targets 75,000 Workforce by End 2025!

Support Measures for Impacted Employees

Employees affected by this move will receive their due notice period compensation along with an additional severance package. TCS will also provide extended insurance coverage and outplacement support to help affected staff transition smoothly into new roles outside the company.

Updated HR Policy Adds Context

Recently, TCS revised its HR norms, mandating a minimum of 225 billable days in a year and reducing bench time to a maximum of 35 days. These policy changes appear aligned with the company’s increased focus on workforce efficiency and resource utility.

TCS Share Price Performance

On July 28, 2025, TCS share price opened at ₹3,110.00 on NSE, below the previous close of ₹3,135.80. During the day, it surged to ₹3,118.00 and dipped to ₹3,081.60. The stock is trading at ₹3,107.50 as of 11:10 AM. The stock registered a moderate decline of 0.90%.

Over the past week, it has declined by 1.65%, over the past month, it has declined by 9.94%, and over the past 3 months, it has declined by 8.65%.

Conclusion

TCS’s move to lay off 12,000 employees is based on operational deployment feasibility rather than AI-driven optimisation. Despite a significant upskilling effort, the company is re-aligning its workforce where necessary while continuing to invest in new talent acquisition and training strategies.

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