{"id":4763,"date":"2025-07-28T15:44:43","date_gmt":"2025-07-28T10:14:43","guid":{"rendered":"https:\/\/www.eqwires.com\/tutorials\/?p=4763"},"modified":"2025-07-28T15:44:44","modified_gmt":"2025-07-28T10:14:44","slug":"tcs-job-cuts-ceo-krithivasan-clarifies-its-not-ai-its-skill-mismatch","status":"publish","type":"post","link":"https:\/\/www.eqwires.com\/tutorials\/tcs-job-cuts-ceo-krithivasan-clarifies-its-not-ai-its-skill-mismatch\/","title":{"rendered":"TCS Job Cuts: CEO Krithivasan Clarifies \u2014 \u201cIt\u2019s Not AI, It\u2019s Skill Mismatch\u201d"},"content":{"rendered":"\n<p id=\"0\">In a move that has stirred the Indian IT sector, Tata Consultancy Services (TCS) has announced plans to cut approximately <strong>12,000 jobs<\/strong>, or <strong>2% of its global workforce<\/strong>, during FY26. Contrary to speculation, CEO K Krithivasan has firmly stated that <strong>artificial intelligence is not the reason<\/strong> behind this decision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What\u2019s Driving the Layoffs?<\/h3>\n\n\n\n<p>Krithivasan emphasized that the layoffs stem from <strong>skill mismatches<\/strong> and <strong>redeployment challenges<\/strong>, not AI-led productivity gains. Despite extensive upskilling efforts\u2014training over <strong>5.5 lakh employees in basic AI<\/strong> and <strong>1 lakh in advanced AI skills<\/strong>\u2014many employees, especially at <strong>mid-to-senior levels<\/strong>, have struggled to transition into tech-heavy roles.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis is not because of AI giving some 20% productivity gains. This is driven by where there is a skill mismatch or where we think we have not been able to deploy someone,\u201d said Krithivasan.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Structural Shifts in Delivery Model<\/h3>\n\n\n\n<p>TCS is undergoing a <strong>strategic transformation<\/strong>, moving away from the traditional <strong>waterfall project management<\/strong> approach to a more <strong>agile, product-centric model<\/strong>. This shift has reduced the need for conventional project and program managers, particularly those in layered leadership roles.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEarlier, in waterfall models, we had multiple leadership layers. That\u2019s changing,\u201d Krithivasan explained.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Who Will Be Affected?<\/h3>\n\n\n\n<p>The layoffs will be <strong>phased across FY26<\/strong>, primarily impacting:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mid-level and senior professionals<\/strong><\/li>\n\n\n\n<li><strong>Junior staff<\/strong> with prolonged bench time (not deployed on any project)<\/li>\n<\/ul>\n\n\n\n<p>TCS has also revised its HR policies, mandating <strong>225 billable days annually<\/strong> and capping <strong>bench time at 35 days<\/strong>, further tightening deployment criteria.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Support for Affected Employees<\/h3>\n\n\n\n<p>TCS has pledged to handle the layoffs with <strong>compassion and care<\/strong>, offering:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Notice-period pay<\/strong><\/li>\n\n\n\n<li><strong>Severance packages<\/strong><\/li>\n\n\n\n<li><strong>Extended health insurance<\/strong><\/li>\n\n\n\n<li><strong>Mental health counselling<\/strong><\/li>\n\n\n\n<li><strong>Outplacement support<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Krithivasan assured that impacted employees will be given opportunities for internal redeployment before final decisions are made.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Future Outlook<\/h3>\n\n\n\n<p>Despite the layoffs, TCS remains committed to hiring <strong>high-quality talent<\/strong> and investing in <strong>new technologies and markets<\/strong>. The company views this restructuring as essential to becoming a <strong>future-ready organization<\/strong>, capable of navigating rapid technological shifts and evolving client demands.<\/p>\n\n\n\n<p id=\"0\"><strong>Conclusion<\/strong> TCS\u2019s decision to cut 12,000 jobs is not a reaction to AI automation, but a strategic recalibration to align talent with emerging business models. As the IT landscape evolves, adaptability and continuous learning will be key\u2014not just for companies, but for professionals across the board.<\/p>\n\n\n\n<p id=\"0\"><strong><a href=\"https:\/\/www.eqwires.com\/tutorials\/who-is-the-best-sebi-registered-investment-advisor-in-i\">Eqwires Research Analyst<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-dark-gray-color has-text-color\"><strong><a href=\"https:\/\/www.eqwires.com\/\">Top-notch SEBI registered research analyst<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-dark-gray-color has-text-color\"><strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.eqwires.com\/\" target=\"_blank\">Best SEBI registered Intraday tips provider <\/a><\/strong><\/p>\n\n\n\n<p class=\"has-dark-gray-color has-text-color\"><a href=\"mailto:info@eqwires.com\"><strong>info@eqwires.com<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-dark-red-color has-text-color\"><strong><a href=\"https:\/\/t.me\/eqwires\">Telegram&nbsp;<\/a>|&nbsp;<a href=\"https:\/\/www.facebook.com\/eqwires\/\">Facebook&nbsp;<\/a>|&nbsp;<a href=\"https:\/\/instagram.com\/Eqwires\">Instagram<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-dark-red-color has-text-color\"><strong>Call: +91 9624421555 \/&nbsp;<em>+91 9624461555<\/em><\/strong><\/p>\n\n\n\n<p><strong><a href=\"http:\/\/www.eqwires.com\/\">www.eqwires.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a move that has stirred the Indian IT sector, Tata Consultancy Services (TCS) has announced plans to cut approximately 12,000 jobs, or 2% of its global workforce, during FY26. Contrary to speculation, CEO K Krithivasan has firmly stated that artificial intelligence is not the reason behind this decision. What\u2019s Driving the Layoffs? Krithivasan emphasized that the layoffs stem from skill mismatches and redeployment challenges, not AI-led productivity gains. Despite extensive upskilling efforts\u2014training over 5.5 &hellip; <a href=\"https:\/\/www.eqwires.com\/tutorials\/tcs-job-cuts-ceo-krithivasan-clarifies-its-not-ai-its-skill-mismatch\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;TCS Job Cuts: CEO Krithivasan Clarifies \u2014 \u201cIt\u2019s Not AI, It\u2019s Skill Mismatch\u201d&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":4764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-4763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-sebi-registered-advisory-company"],"_links":{"self":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/comments?post=4763"}],"version-history":[{"count":1,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4763\/revisions"}],"predecessor-version":[{"id":4765,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/posts\/4763\/revisions\/4765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media\/4764"}],"wp:attachment":[{"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/media?parent=4763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/categories?post=4763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eqwires.com\/tutorials\/wp-json\/wp\/v2\/tags?post=4763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}