Relentless layoffs continue globally in the technology sector, as the agenda for an AI push rises among the IT players. As per data, at least 137,691 people are impacted due to layoffs carried out by 491 companies in 2025 so far. Meta, Amazon, Microsoft, Intel, and Google, among others, are trimming their workforce. In India, the mega IT company Tata Consultancy Services (TCS) sent shockwaves with a whopping 12,000 job cuts. Is the layoff by TCS just the beginning of a mass job cut trend in the Indian tech sector?
Tech Layoffs 2025:
As per Trueup.io, which tracks daily tech layoffs, so far in 2025, there have been 491 layoffs at tech companies, with 137,691 people impacted.
This means 562 people are losing their jobs per day.
Last year, there were 1,115 layoffs at tech companies with 238,461 people impacted (653 people per day).
TCS Job Cut:
Panic emerged in the Indian tech sector recently when the Tata Group's flagship TCS announced a 2% job cut in its total workforce, which would mean approximately 12,000 people are set to lose their jobs.
TCS' decision is met with global backlash from unions and employees.
Through their X handler, the Union of IT & ITES Employees, UNITE said, "TCS is retrenching workers not out of necessity, but for profit. Targeting senior employees & pushing illegal layoffs is an attack on job security across IT. Workers are not numbers on a balance sheet - we demand justice!"
People globally, along with the unions, have been holding protests against TCS's decision.
Another post of UNITE said, "Union of IT and ITES Employees protested today in Chennai against the announced TCS layoff of 12000 employees and the government inaction."
What Does TCS Say About Latest Layoff?
When TCS declared its 12,000 job cut, it told GoodReturns, "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," the TCS team added.
Towards this, TCS also said that several 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% of our global workforce, primarily in the middle and the senior grades, over the course of the year," the tech giant added.
"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," added TCS.
TCS lastly said that they will make all efforts to provide appropriate benefits, outplacement, counselling, and support to the impacted employees.
"We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service, and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities," TCS told GoodReturns.
What's Ahead After the TCS Job Cut?
According to Jaspreet Bindra, CEO- AI&Beyond, the Indian IT services sector is poised for a transformation due to multiple forces. One is global uncertainty, including protectionist trends from the US and parts of Europe. Second, the cost-arbitrage model that long sustained the industry is ageing. And third, the rise of AI, which is beginning to automate processes that humans once managed, leading to potential job shifts. This impact will not just be limited to IT services but will also extend to the Big Four and consulting firms.
In the case of TCS, Bindra said, "while AI may play a role going forward, this particular layoff appears more connected to stagnant financial performance, missed growth expectations, and over-hiring during boom periods. The company's CEO himself didn't cite AI as the main reason."
"Interestingly, the layoffs are concentrated in mid-to-senior roles, unlike global big tech, where entry-level roles are more affected by AI. Looking ahead, as companies transition to new business models, we could see a churn, with hiring in AI-driven roles and redundancies in others. TCS may just be the first of several," the expert added to GoodReturns.
TCS layoffs are the third largest by an IT company in the world.
In July alone, Microsoft launched another fresh round of 9,000 mass layoffs, which came after 6,000 workers were removed in May. Also, in January, Microsoft let go of 2,280 employees, and another 2,000 jobs cut in April. The Bill Gates-backed company reduced its workforce by nearly 4%. That being said, Microsoft has carried out the second-largest layoff in 2025 under the sector.
Further, Intel is trimming about 20% of its workforce, which would translate to around 10,000 job reductions. Also, the company is closing its automotive chip division. Meanwhile, other reports stated that in total, Intel is cutting over 24,000 jobs, making it the largest layoff of 2025 by a tech company.
In India, during the first quarter of FY26, Wipro let go of 114 employees, while HCL Tech and Tech Mahindra recorded 269 and 214 reductions in headcount. Infosys employed merely 210 people in Q1FY26. TCS made the highest net addition of 5,090 employees in Q1 before announcing mass layoffs.
For investment related articles, business news and mutual fund advise
Click it and Unblock the Notifications
Sign in with Google