The IT Ministry is closely monitoring developments following Tata Consultancy Services' (TCS) decision to lay off over 12,000 employees, according to sources. Employment growth remains a key priority for the ministry. There's a sharp focus on how initiatives like the Employment Linked Incentive can help boost job creation. At the same time, the emphasis is on skilling and reskilling of the workforce.
The IT Ministry is keeping a close watch on the entire situation and is in touch with the tech company, sources said. The ministry is concerned and aims to understand the underlying causes behind these layoffs.
TCS layoffs
This stance from the ministry gains significance as TCS, India's largest IT services firm, is set to lay off 12,261 employees, which is two percent of its global workforce this year. The impact will primarily be felt in middle and senior-grade positions. As of June 30, 2025, TCS's workforce stood at 6,13,069, having increased by 5,000 employees in the recently concluded April-June quarter.
TCS stated on Sunday that this move is part of the company's broader strategy to become a "future-ready organization." This involves investments in technology, AI deployment, market expansion, and workforce realignment.
"TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model," TCS explained.
"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 percent of our global workforce, primarily in the middle and the senior grades, over the course of the year."
TCS confirmed it will provide appropriate benefits, outplacement, counseling, and support to the impacted employees.
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