Karnataka's IT Minister, Priyank Kharge, announced on Tuesday that the state is conducting a survey with companies to evaluate the impact of artificial intelligence (AI) on the workforce. The survey is expected to be completed within a month. Kharge's comments come in the wake of TCS's recent decision to cut 12,000 jobs. The unexpected move has sent fresh tremors through the tech industry already struggling with global macroeconomic challenges and geopolitical uncertainty.
Addressing a query about the Karnataka State IT/ITeS Employees' Union seeking action against TCS, Kharge clarified that the state does not officially recognise unions in the IT sector. However, he added, "If there are concerns raised by the public and people, it is our responsibility to address it".
"We are talking to companies to ask them what exactly we can do to ensure our HR or talent is most employable. We are getting a survey done with the companies on the effect of AI on the workforce," Kharge told PTI on the sidelines of an SAP Labs India event. He reiterated that the process is expected to be completed in about a month.
The minister's statement is particularly relevant as India's top IT services companies have reported single-digit revenue growth in the first quarter of FY26. This slowdown is attributed to macroeconomic instability and delayed client decision-making.
TCS layoffs
TCS stated that the planned layoffs are part of a broader strategy to become a "future-ready organisation" by investing in new technologies, including AI, and realigning its workforce. The company said this move would affect about 2 percent of its global workforce, primarily in middle and senior grades.
Meanwhile, TCS MD and CEO K. Krithivasan recently stated that the company is experiencing a "demand contraction" due to ongoing uncertainties and does not anticipate double-digit revenue growth in FY26. He noted that delays in client decision-making have "intensified" and expressed hope for a return to discretionary spending once the economic climate improves.
Global trend
The situation in India mirrors a global trend. Microsoft has laid off over 15,000 employees in 2025. According to Layoffs.fyi, a platform that tracks global tech industry layoffs, more than 80,000 tech workers have been laid off across 169 companies this year alone. In 2024, the number was a staggering 1.5 lakh across 551 companies, coinciding with both global economic instability and a growing debate about AI's impact on jobs and employability.
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