‘Kitne aadmi the': CP Gurnani explains why TCS layoffs are a sign that the ‘Sholay era' of IT companies is over

Time of India

2 days ago

Tata Consultancy Services
' (TCS) recent decision to lay off around 12,000 employees is being viewed by industry leaders as a sign of a major shift in how Indian IT firms operate. Former
Tech Mahindra
CEO CP Gurnani said the move signals the end of evaluating IT companies based on workforce size, calling for a stronger focus on outcome-based models driven by artificial intelligence (AI).
Shift from headcount to output-led metrics
Speaking to CNBC-TV18, IT veteran CP Gurnani said Indian IT firms will increasingly move away from being measured by employee numbers. 'The focus on the Sholay dialogue 'Kitne aadmi the' or judging the Indian IT industry based on headcount—that period will be over,' Gurnani told
CNBC-TV18
.
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He added, 'We will have to rewire ourselves to focus on output and outcome-based business models, outcome-based pricing, and more importantly what it does for business and customers, instead of looking at IT and systems in isolation.'
Human-centric AI will reshape jobs, not just cut them
Addressing concerns over job losses, Gurnani noted that although some roles may be cut due to automation and AI integration, new types of jobs are also emerging. He pointed out that hiring in AI roles is already on the rise.
'If you see the job openings at these companies, they have only increased since the previous year. This is because they need more AI engineers, more data scientists, prompt engineers and people who can collapse few functions of an organisation,' he said.
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'There is no point of having an HR organisation. Ultimately, it will become how do I serve my employee. That means it is a data-centric organisation, with a human touch,' Gurnani added.
TCS trims workforce amid shift in business priorities
TCS recently confirmed that it would reduce its workforce by about 2%, affecting nearly 12,000 employees, over the course of 2025. The company cited changing technology demands, client expectations, and strategic realignment as key reasons for the move. The layoffs are expected to mainly impact employees in mid-level and senior roles across various business units.
According to the company, the job cuts are part of its long-term plan to become more agile and focus on emerging areas like artificial intelligence, data science, cloud computing, and automation.
Revised bench policy puts pressure on unallocated staff
Amid layoffs, TCS has also introduced a stricter deployment policy that limits bench time to 35 business days per year. Employees are now required to be billed for a minimum of 225 working days annually. Failing to meet these expectations may affect their salary progression, promotion prospects, and continued employment.
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During their time on the bench, employees must attend office and spend four to six hours daily on upskilling through internal and external learning platforms. The company has asked staff to take initiative and work closely with the Resource Management Group (RMG) to find project opportunities.
Workers' group flags mental health and job security concerns
The Nascent Information Technology Employees Senate (NITES) recently raised concerns over the pressure faced by employees under the revised bench policy. In a letter to the Union Labour Minister, the group described the policy as 'inhumane' and said it was causing mental stress among skilled professionals who were temporarily without assignments.
'Instead of support, they are met with suspicion, coercion, and threats,' NITES president Harpreet Singh Saluja wrote in the letter. The organisation also accused TCS of withholding experience letters from those unable to secure new roles within the prescribed time.
Hiring slows across India's top IT companies
The layoffs come at a time when the overall hiring outlook in India's IT industry has weakened. Data from recent quarters shows that job additions at leading IT companies have dropped significantly. In the April–June 2025 quarter, the top six Indian IT firms added only 3,847 employees, compared to 13,935 in the previous quarter.
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