Tech jobs at risk? TCS lays off 12,000 and Trump wants tech hiring stopped in India, full story in 5 points
Point 1: TCS to cut 2 per cent of its workforceTCS, which employs over 6.13 lakh people worldwide as of June 2025, will reportedly reduce its headcount by about 2 per cent over FY 2026. This means more than 12,000 TCS employees will lose their jobs. These job cuts will primarily impact the TCS employees in the middle and senior management levels. TCS CEO K. Krithivasan told Moneycontrol that the cuts are part of a broader effort to align skills with changing industry demands rather than a simple cost-cutting exercise. 'This is not because of AI but to address skills for the future,' Krithivasan said.Point 2: TCS is automating tasks with AIAlthough TCS has denied that the growing use of artificial intelligence is directly responsible for the layoffs, industry analysts believe AI and automation are key factors influencing staffing needs. TCS has been increasingly automating roles in areas like manual testing, leaving many senior employees struggling to adapt to these emerging technologies. While TCS has been deploying AI at scale and retraining its employees, Krithivasan admitted that the ongoing redeployment 'hasn't been effective' in all cases, making layoffs inevitable.Point 3: Severance packages by TCSThe job cuts at TCS will be carried out in the coming days, and the company has assured it will offer affected staff members severance packages, salary for the notice period, extended health insurance, and outplacement assistance. The company has also revealed that it is updating its bench policy to focus on keeping employees engaged with client projects. Krithivasan said this change is designed to 'put positive pressure' on staff so they can remain active instead of being unassigned for too long.Point 4: Trump asking tech companies to hire AmericansEarlier this month, US President Donald Trump called on major technology companies such as Google and Microsoft to halt hiring from overseas, including in India. Speaking at the AI Summit in Washington, Trump criticised what he described as the 'globalist mindset' of tech firms and said they should be 'all in for America.' He added, 'Many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India and stashing profits in Ireland Under President Trump, those days are over.'Point 5: Trump to make it harder for Indians to get jobs in the USadvertisementOn 23 July 2025, President Trump also signed three executive orders as part of a broader 'AI Action Plan'. With this plan Trump aims to strengthen US leadership in artificial intelligence. The plan also orders to fast-track the construction of AI infrastructure in the US, including data centres and energy sources, mandate 'politically neutral' or 'non-woke' AI models for all federal AI procurement, and encourage building the entire 'AI tech stack' within the US.These orders ask tech companies getting federal money not to outsource AI work abroad and also mentions that US states with stricter AI rules could see their government funding reduced. The immediate impact of these orders on Indian IT service exports may be limited, since the rules are largely aimed at the federal contracts and infrastructure projects. It does signal at the tighter regulations and growing barriers for Indian firms and techies looking to work in or with the US.- Ends
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