Tata Consultancy Services (TCS) announced plans to reduce its workforce by 12,000 employees, which represents about two percent of its total staff. This decision is largely attributed to the impact of artificial intelligence on the industry and ongoing market uncertainties. The layoffs will primarily affect middle and senior-level positions as TCS aims to evolve into a more future-ready organization.

CEO K Krithivasan described this move as one of his toughest leadership challenges. The company indicated that it would be letting go of employees whose roles are no longer viable amid significant changes within the organization. This follows an internal initiative called "Project Fluidity," which assesses senior managers' performance and places those struggling on a temporary bench status. Under the new policy, unbilled time for consultants is limited to 35 days per year, with a requirement for 225 billable days.

The IT services sector in India, valued at $283 billion, is facing significant challenges as clients cut back on non-essential technology spending due to economic pressures like inflation and uncertain trade policies from the US. In fact, hiring in this sector dropped sharply during April to June 2025 compared to previous quarters.

In addition to job cuts, TCS has postponed onboarding for over 500 new hires and faced legal complaints regarding its bench policy from employees who claim it is exploitative. Despite these difficulties, TCS plans to provide support for departing employees through various assistance programs including severance benefits and career transition help.

The company also announced that salary increases would be at their lowest in four years, ranging between four and eight percent. This comes after reporting a slight profit increase but a decline in revenue growth compared to previous quarters.

Overall, TCS's workforce reduction reflects broader trends within the technology sector where many companies are making similar cuts due to economic pressures and shifts caused by advancements in AI technology.

Original article (tcs) (india)

The article provides an overview of Tata Consultancy Services' (TCS) decision to reduce its workforce and the broader implications for the IT services sector in India. Here is an analysis of its value to readers:

Actionable Information: The article does not offer specific steps or actions for readers to take directly. It primarily informs about TCS's plans and the industry's challenges, but it lacks practical guidance for individuals affected by these changes.

Educational Depth: It provides some depth by explaining the reasons behind TCS's decision, such as the impact of AI and market uncertainties. It also mentions an internal initiative, "Project Fluidity," which assesses performance. However, it could have delved deeper into the causes and potential long-term effects on the industry.

Personal Relevance: The topic is relevant to individuals working in the IT sector, especially those employed by TCS or similar companies. It directly affects their job security and future prospects. For others, it may have indirect relevance, as it highlights economic pressures and technological shifts that could impact various industries.

Public Service Function: While the article does not provide official warnings or emergency contacts, it serves a public service by bringing attention to significant job cuts and their potential impact on the industry. It informs readers about a major development that could affect employment trends and the economy.

Practicality of Advice: As the article focuses on reporting news, it does not offer practical advice or solutions. It could have included resources or suggestions for affected employees, such as career transition tips or information on support programs.

Long-Term Impact: The article highlights a significant shift in the industry, indicating potential long-term changes. It suggests that the IT sector is adapting to economic pressures and technological advancements, which could have lasting effects on employment and business strategies.

Emotional/Psychological Impact: The news of job cuts and salary increases may evoke emotions such as anxiety or uncertainty for those affected. However, the article does not provide strategies to manage these emotions or offer a sense of hope or resilience.

Clickbait/Ad-driven Words: The language used is relatively neutral and does not employ sensational or fear-mongering tactics. It presents the information in a straightforward manner, avoiding excessive drama.

Missed Opportunities: The article could have been more helpful by including practical resources or guidance for employees facing layoffs. It could have linked to career development websites, provided contact information for support services, or offered tips on adapting to a changing job market. Additionally, a deeper analysis of the industry's future and potential opportunities could have been beneficial.

In summary, the article informs readers about TCS's workforce reduction and its broader implications, but it lacks actionable steps, detailed educational content, and practical advice for individuals. It serves as a news report but could have provided more depth and guidance to assist those directly impacted by these changes.

"The IT services sector in India, valued at $283 billion, is facing significant challenges as clients cut back on non-essential technology spending due to economic pressures like inflation and uncertain trade policies from the US."

This sentence uses a passive voice construction to describe the challenges faced by the IT sector. It does not explicitly state who or what is causing these challenges, but the use of "clients" and "economic pressures" suggests that external factors are to blame. This passive language hides the potential impact of internal decisions or strategies within the sector. By focusing on external factors, it shifts attention away from any potential internal issues or responsibilities.

The text primarily conveys a sense of worry and concern, which is a dominant emotion throughout. This emotion is evident in the language used to describe the company's decision to reduce its workforce. Phrases like "one of his toughest leadership challenges" and "significant challenges" paint a picture of a difficult and worrying situation. The strength of this emotion is moderate to high, as it permeates the entire message, creating an underlying tone of anxiety.

The purpose of this emotional tone is to alert readers to the seriousness of the situation. It serves to capture attention and emphasize the gravity of the workforce reduction and its potential impact on employees and the industry. By expressing worry, the text aims to create a sense of shared concern, encouraging readers to engage with the issue and perhaps even empathize with those affected.

To amplify this emotion, the writer employs several persuasive techniques. One notable strategy is the use of specific, descriptive language. For instance, describing the layoffs as affecting "middle and senior-level positions" adds a layer of detail and specificity, making the situation more tangible and thus more emotionally impactful. Another technique is the mention of the CEO's personal challenge, which humanizes the decision and adds a layer of complexity to the narrative, potentially evoking a deeper emotional response.

Additionally, the text includes a range of other emotions, each serving a specific purpose. For example, there is a hint of anger or frustration in the mention of "exploitative" bench policies, which likely aims to stir a reaction from readers, perhaps encouraging them to question the fairness of such practices. There is also a subtle sense of relief or satisfaction implied in the company's plans to support departing employees, which may be an attempt to mitigate the negative impact of the news and present the company in a more positive light.

Overall, the emotional landscape of the text is carefully crafted to guide the reader's reaction, creating a sense of shared worry and concern while also attempting to balance this with a degree of understanding and support for the company's actions.