Mumbai, July 28: The TCS layoffs announcement for 2025 has shocked the tech industry. India's largest IT giant, Tata Consultancy Services, announced it would lay off 12,000 employees in 2025, reducing its workforce by 2%. Like many other tech layoffs, news attributed to the artificial intelligence (AI), the masses assumed that the same reason would be behind the decision by Tata Consultancy Services. However, the TCS CEO, K Krithivasan, explained why the IT major was cutting thousands of jobs, and he emphasised that it was not related to AI.

Tata Consultancy Services CEO K Krithivasan explained that the company's layoffs were due to the skills mismatch and not related to artificial intelligence. TCS announced its plans to reduce the workforce by 2% this year, which is estimated to affect over 12,000 jobs. This comes after the tech giant introduced the TCS Bench Policy, limiting the time an employee can sit on a bench without a project to 35 days. The policy caused employees to worry about potential layoffs in the coming days. NASA Layoffs: US Space Agency May Lose 20% of Workforce As 3,870 Employees Expected To Depart.

TCS Layoffs 'Not Because of AI': CEO K Krithivasan

TCS CEO K Krithivasan said that AI was gaining 20% in productivity; however, it was not the reason for letting the employees go. According to reports, he mentioned, "We're not doing that". He further highlighted, "This is driven by where there is a skill mismatch, or where we think that we have not been able to deploy someone". 

Krithivasan pointed out  that TCS would continue to hire highly talented individuals in the future. He said that IT layoffs were announced due to the feasibility of deployment and not because the company needed fewer people. The CEO of Tata Consultancy Services said that the company had trained around 5,50,000 people in initial skills and 1,00,000 in advanced skills. He explained that the company was able to train them up to an extent, but not beyond Level 1 and Level 2 skills. Microsoft Layoffs: CEO Satya Nadella Sends Memo to Employees, Explains What Led to Massive Job Cuts in 2025..

TCS Layoffs: Benefits to Affected Individuals 

TCS announced that the affected employees would receive a notice period and an added severance package along with extended insurance benefits. These individuals were assured of outplacement opportunities. Tata Consultancy Services expressed gratitude and acknowledged the challenging times for the affected individuals. 

(The above story first appeared on LatestLY on Jul 28, 2025 10:28 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).