Overview

• TCS is proceeding with a plan to cut about 12,000 jobs—around 2% of its global workforce—citing skill mismatches and deployment challenges as it shifts toward AI-driven delivery.
• The company has frozen recruitment of experienced hires, suspended annual salary hikes and slowed lateral onboarding to more than 65 days as part of its cost-control overhaul.
• Investors knocked TCS shares down 1.6%, erasing approximately ₹28,148.72 crore from its market value within two days of the layoff announcement.
• Infosys has pledged to hire 20,000 fresh graduates, deepen AI reskilling for its employees and raised its FY26 revenue growth guidance to 1–3% in constant currency.
• Nasscom warned that further workforce rationalisation is likely as Indian IT firms pivot to AI-powered, product-aligned models, and noted that over 1.5 million professionals were trained in AI and GenAI by Q4FY25.