&w=3840&q=100)
Why is TCS letting go of 12,000 of its employees? Is AI the reason?
Tata Consultancy Services, one of India's biggest IT companies, has decided to axe 2 per cent of its global workforce, impacting about 12,000 jobs in the financial year 2025-26, the company announced on Sunday.
This marks one of the biggest workforce shakeups in the company's history. Those affected include a large number of mid-to-senior-level professionals, although some junior-level staff have also been impacted, especially those who have been on the bench for an extended period.
STORY CONTINUES BELOW THIS AD
TCS chief executive officer and managing director K Krithivasan called the decision a hard but necessary reckoning.
The development has left many wondering, why is the IT behemoth known for its stability among most Indians, suddenly letting go of thousands? Is this just about performance, or is the rise of artificial intelligence playing a role? Here's what we know.
Why is TCS firing 12,000 employees?
According to Reuters, TCS, the most profitable company in the Tata Group, is going through a major restructuring phase as it expands into new markets, adopts fresh technologies, and leans into AI integration.
As part of this shift, around 12,200 employees will lose their jobs, even as the company insists it's doing everything possible to minimise disruption.
'This transition is being planned with due care to ensure there is no impact on service delivery to our clients,' the company said, reports Reuters.
The layoffs won't be geography or domain-specific and will be concluded over the next three quarters of FY26.
Earlier this month, Executive Vice President and Chief Human Resources Officer (CHRO) Milind Lakkad stated in a company call that the workforce stood at 6,13,069 by the end of the first quarter.
'Net attrition during the quarter was over 5,000 employees. We have honoured all the job offers, and we'll do so for the rest of the year. Lateral hiring will be recalibrated based on the demand outlook,' he was quoted as saying in The Indian Express report.
STORY CONTINUES BELOW THIS AD
Lakkad also mentioned that TCS plans to keep investing in its business to stay in sync with the fast-evolving needs of its clients.
Is AI the reason behind TCS's job cuts?
In an exclusive conversation with Moneycontrol, TCS CEO K Krithivasan explained that the job cuts are not driven by artificial intelligence efficiency gains but are actually a part of a larger vision that aims to make the company 'more agile and future-ready'.
'It is not because that we need less people. We will continue to look for high (quality) talent, acquiring talent, training talent. That continues to happen. This is more about where there is a feasibility of deployment,' he said.
TCS CEO K Krithivasan explained that the job cuts are not driven by AIefficiency gains but are actually a part of a larger vision that aims to make the company 'more agile and future-ready' in the face of rapid technological shifts. Image for Representation. Reuters
TCS has already trained over 550,000 employees in basic AI skills and around 100,000 in advanced AI, hoping to prepare its workforce for the next tech wave.
However, not all employees, especially those in senior positions, have been able to transition smoothly into new-age roles. The challenges are particularly stark for those accustomed to older project models.
STORY CONTINUES BELOW THIS AD
'When we did programs in the old waterfall method, we had multiple leadership teams. That's changing,' Krithivasan noted.
Despite this, experts suggest that AI and automation are silently reshaping the job market in IT. Roles like manual testing are increasingly being replaced by AI, and those who struggle to keep up with the pace of technological change are the ones most at risk.
And this trend isn't unique to TCS. For the past couple of years, major tech companies have been slashing roles and leaning into automation. Earlier, Silicon Valley giant Microsoft said that roughly 30 per cent of the code is now AI-generated.
What will TCS offer the affected employees?
TCS has said the layoffs won't happen abruptly. Instead, the company plans to carry them out in a phased and considerate manner, ensuring those impacted are given a chance at redeployment within the company before any final decisions are made.
'It will be coming through the year. We won't do it in a hurry. We will first talk to the people that could be impacted. We will provide them an opportunity. When we are not able to provide the opportunity, then we will do what we need to do,' Krithivasan told Moneycontrol.
STORY CONTINUES BELOW THIS AD
For those who do end up leaving, TCS has promised to support them through a structured exit process. The company said it will follow its standard HR policies, which include notice-period pay, extended insurance coverage, severance benefits, outplacement support, and access to counselling services. 'We will do it in a very, very compassionate way,' Krithivasan added.
While the company hasn't shared specific dates, the entire process is expected to roll out over the course of FY26.
With input from agencies
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 minutes ago
- Time of India
Error in ITR Utility: Penal interest is automatically getting added to taxpayers who don't have to pay advance tax, check the details
Academy Empower your mind, elevate your skills What is the error with the ITR utility's Section 234C interest calculation? "As per the second proviso to section 234C(1) of the Income-tax Act, 1961, interest under this section is not leviable if the net tax liability, after reducing TDS, TCS etc. is less than Rs 10,000. However, it has been observed that the current version of the online ITR utility computes interest under section 234C without considering the effect of such TDS/ TCS credits. As a result, interest is erroneously calculated and populated even in cases where the net tax liability falls below the prescribed threshold (Rs 10,000)." "Although the field for section 234C interest remains editable in the utility, concerns persist as to whether manual overrides may lead to adverse outcomes during return processing, such as adjustments, CPC notices, or delays in refunds. However, it is pertinent to note that the said issue does not persist in offline Excel utility wherein the TDS and TCS credit are effectively provided." Excel Utility – ITR 2 (offline) Suresh Surana ITR-2 excel utility Online Interface – ITR 2 ITR Online utility What can happen if the tax department does not fix this issue? Excess payment of Section 234C interest: 'If this issue is not rectified by the tax department, it may lead to additional tax implications for taxpayers. Firstly, incorrect auto-computation of interest under section 234C, despite net tax liability being below Rs 10,000 may result in excess payment of interest, which is not legally warranted. This increases the effective tax outflow for the assessee without statutory basis.' 'If this issue is not rectified by the tax department, it may lead to additional tax implications for taxpayers. Firstly, incorrect auto-computation of interest under section 234C, despite net tax liability being below Rs 10,000 may result in excess payment of interest, which is not legally warranted. This increases the effective tax outflow for the assessee without statutory basis.' Tax notice: 'Secondly, if taxpayers opt to manually override the pre-filled interest field to reflect the correct amount, there is a risk of mismatches during return processing at CPC, potentially leading to system-generated intimations under section 143(1). These may propose adjustments on the grounds of discrepancy in self-assessment tax or interest computation, even though the taxpayer is in compliance with law.' 'Secondly, if taxpayers opt to manually override the pre-filled interest field to reflect the correct amount, there is a risk of mismatches during return processing at CPC, potentially leading to system-generated intimations under section 143(1). These may propose adjustments on the grounds of discrepancy in self-assessment tax or interest computation, even though the taxpayer is in compliance with law.' Delay in tax refund: 'Additionally, unresolved mismatches can cause delays in refund processing, particularly for salaried individuals or those with TDS or TCS driven refunds. In some cases, taxpayers may be compelled to respond to unnecessary notices or file rectification requests, increasing administrative burden.' What can taxpayers do? Mismatch with Department's Records: " If the ITR shows less interest than actually payable, it may result in processing mismatches, leading to refunds being withheld or delayed. If the ITR shows less interest than actually payable, it may result in processing mismatches, leading to refunds being withheld or delayed. Penalties or Notices: In rare cases, the department might treat it as under-reporting of tax liability, especially if the shortfall is significant or repetitive. In rare cases, the department might treat it as under-reporting of tax liability, especially if the shortfall is significant or repetitive. Revised Returns or Rectifications: Taxpayers may have to file rectifications (u/s 154) or revised returns, causing additional compliance burden." Who is liable to pay advance tax? When is Section 234C interest levied? Advance tax paid on or before 15th June is less than 12% of the assessed tax. Advance Tax paid on or before 15th September is less than 36% of the assessed tax. Advance Tax paid on or before 15th December is less than 75% of the assessed tax. Advance Tax paid on or before 15th March is less than 100% of the assessed tax. Due date for payment of advance tax Advance tax to be payable On or before June 15 of the previous year At least 15% of advance tax On or before September 15 of the previous year At least 45% of advance tax On or before December 15 of the previous year At least 75% of advance tax On or before March 15 of the previous year 100% of advance tax Note: Any tax paid, on or before 31st March, shall also be treated as advance tax paid during the financial year. Chartered Accountant Aditi Bhardwaj shared on micro-blogging website X (formerly Twitter) that there is an error in calculating Section 234C interest in the Income Tax Return Utility. She and other Chartered Accountants with whom we spoke highlighted that if this error in ITR utility's Section 234C related to interest calculation is not fixed then many tax payers may get automated tax notices or face issues at the time of their ITR processing, for no fault of give you a brief about Section 234C interest, it is levied when you have a tax liability above Rs 10,000 but failed to pay the minimum amount of advance tax via the four prescribed time said on X, 'Please note that, as per law, interest under section 234C is not applicable when the net tax liability is less than Rs 10,000. However, the current ITR software auto-calculates and populates this interest incorrectly. Requesting @IncomeTaxIndia to kindly review and rectify this issue in the utility and online portal. While the field is editable in the form, we would like to ensure that manually overriding it will not create issues during processing.'Also read: Wife pays no income tax after selling two houses for Rs 6 crore gifted by her husband, wins case in ITAT Mumbai; here's how it happened We have asked experts about this problem and here's what experts said to ET Wealth Online:'Yes, the CA (Aditi Bhardwaj) is right. Interest under section 234C is not applicable if net tax liability is less than Rs 10,000. But the ITR utility is wrongly calculating it, and shows less interest than what is actually to be paid. As per our working, the utility is doing incorrect calculations.'The concern raised by the CA (Aditi Bhardwaj) regarding the automatic computation of interest under section 234C in the Income Tax Return (ITR) utilities is relevant screenshots of the online Interface and offline Excel utility is provided as below:Source: CA (Dr.) Suresh SuranaSource: CA (Dr.) Suresh SuranaSurana explains that If the tax department does not fix this issue in the ITR utility, the following can happen:Surana says: 'Therefore, timely intervention by the tax department is essential to ensure accurate computation, smooth processing, and reduction in avoidable disputes.'Also read: Shinde wins Rs 1.4 lakh tax penalty case despite claiming false income tax deductions to reduce income by 50%; Know the details Soni agrees with Surana and adds that if this issue is not fixed immediately then the 'Centralised Processing Center (CPC) may later raise a demand for shortfall in interest under Section 234C, as per correct computation, even though the utility showed a lower amount.'Soni explains that you need to file an recitification request or revised ITR if this issue is not says:According to the Income Tax Department website, 'Every person, whose estimated tax liability for the Financial Year is Rs 10,000 or more, shall pay his taxes in advance in the form of "advance tax". However, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from a business or profession is not liable to pay advance tax.'If a taxpayer's income tax liability is more than Rs 10,000 then that taxpayer needs to discharge the tax liability by following a specified advance tax interest under Section 234C shall be levied if payment of advance tax in an instalment is less than the prescribed percentage (given in the above table). However, the interest shall be levied if:According to the Income Tax Website , the advance tax is payable by an taxpayer in 4 instalments on or before the prescribed due dates as specified in the below table:
&w=3840&q=100)
First Post
34 minutes ago
- First Post
Milking it: How mothers in US, UK are making around Rs 69,000 a day selling breast milk
It's the ultimate side hustle. Many women in the United States and the United Kingdom are selling their breast milk at a premium after seeing a demand for it in the market. And they are raking in the moolah — some earn Rs 69,000 to Rs 86,000 a day, depending on how much they can pump read more Many women in the US and UK are selling their breast milk online and raking in the moolah. Representational image/Reuters We all know about side hustles and moonlighting. Across the world, people are taking up side hustles to make an extra buck. But there are many who are quite literally milking their side hustles. What are we talking about? We are talking about a growing number of new mothers in the United States as well as the United Kingdom who are doing just that: stockpiling their breast milk, selling it online, and cashing in big time. STORY CONTINUES BELOW THIS AD And this milk business is no small joke — some of these 'mammas' are minting over $1,000 (Rs 86,628) a day in profit by selling their naturally available milk to other women and in some cases even bodybuilders, who believe that breast milk is the best to pump those biceps up. Mammas' big milk businesses Meet Keira Williams, a 31-year-old NICU nurse from Atlanta in the US. She started selling her breast milk in May and since then sold more than 103 litres of it. And the money she has made from the business? She told the New York Post, 'I have made $800 (Rs 69,302) in just one day.' She further noted in the same report that she began this business by using Facebook groups to make connections. But Williams isn't alone. Thirty-three-year-old Emily Enger, a teacher from Minnesota, is also in the breast milk business. She started selling her milk when she noticed a lot of social pressure about breastfeeding, telling The Times, 'I feel like we started hearing about the positives of breastfeeding and I was like, OK, let's do this.' Most of the women who are selling their breast milk are doing it to make extra money. Representational image/AFP Today, Enger has been able to make $1,000 or more depending on how much she pumps. 'At first I thought 'I have this milk sitting there in the freezer, I might as well just give it away',' Enger told The Times. 'But then I thought, well you go to the store and you buy a gallon of milk or you go to the store and you buy formula. You can't go into a hair salon, for example, and expect a free haircut. Time and, literally, energy has gone into producing milk. That should be valued.' And the trend of selling breast milk isn't just restricted to the US. In the UK too, many new moms are bagging and selling their breast milk for a premium. A woman, who identified as just Emily in a Daily Mail report, said of her job, 'I'm a stay-at-home mum due to childcare expenses, and having worked in childcare myself and being on minimum wage I would have barely even had enough money after paying childcare costs. STORY CONTINUES BELOW THIS AD 'If men or women are willing to pay me to use my breast milk, which is great for everyone, contains amazing properties that are beneficial for all ages, then I would definitely just make some money from what I produce for free.' Another said that she sells her milk so that she can stay longer at home without losing sleep over losing her salary. 'I'm selling my extra breast milk because it's extra money that may help to fund one to two months extra after my maternity pay ends.' Breastfeeding movement — the fuel behind it But what's the reason these women are willing to pump, bag and sell their breast milk. While many of them are doing it for extra money, they note that there's been a rise in breast milk owing to the 'Make America Healthy Again' movement powered by Robert F Kennedy Jr. The US Health and Human Services Secretary Robert F Kennedy Jr has ordered an investigation on baby formula in the US, owing to which many new mothers to rethink what they are feeding their young and, in turn, cause a growth in demand for their breast milk. On TikTok and other social media platform, a lot of discussion is on 'breast is best' in which mothers, and experts espouse the benefits of breast milk over everything else. STORY CONTINUES BELOW THIS AD There are a lot of discussions online emphasising the benefits of breast milk for babies that has put led women to sell their breast milk online. Representational image/AFP This has put a lot of pressure on those who are unable to produce enough milk or who are undergoing treatments during lactation. For instance, there's a Facebook group called Breastmilk Community for All, which has 33,000 members. It is full of appeals from mothers who say they would rather their child have a stranger's milk than store-bought formula. 'It was always my plan to breastfeed but I take medication that makes it unsafe,' Briana Westland, a member from Fort Lauderdale, Florida, who spends around $1,200 a month to buy breast milk, told The Times. 'Obviously fed is best but you can't beat the nutritional quality of human milk, no matter what anyone says.' The ultimate pump But it's not just mothers who are wanting to buy breast milk. Much of the demand comes from bodybuilders, who hail it to be a 'super food' of sorts — perfect for pumping up their muscles. Referred to as 'liquid gold,' many bodybuilders note that breast milk has all the nutrients in order to achieve muscle gains and get into shape. In fact, the Netflix series (Un)Well even expanded on this idea, with James 'JJ' Ritenour, an amateur bodybuilder saying, 'If I wanna grow and be the best that I can, I'm going to eat like a baby, I'm going to sleep like a baby, and if drinking breast milk is a part of that, than it's definitely an edge I'm going to take advantage of.' STORY CONTINUES BELOW THIS AD A lot of the demand for breast milk comes from bodybuilders who believe that it is a 'super food' that can help build muscle faster. Representational image/Pixabay Speaking on this notion that breast milk is the answer to get ripped, Brian St Pierre, a sports dietitian with Precision Nutrition, told Men's Health, 'I think the idea behind drinking breast milk for muscle growth is that it's incredibly calorie and nutrient dense, and it has some additional healthy substances. 'Breast milk is designed to rapidly grow a human baby, so maybe people think a similar effect will happen to fully grown humans?' However, many fitness experts argue that drinking breast milk offers no value at all. 'There is nothing specific in breastmilk that will cause adults to gain muscle mass,' Dr Jacques Mortiz, the director of the division of gynaecology at Mount Sinai Roosevelt in New York, told ABC News. Health concerns remain However, there are legal and health ramifications to this side hustle and women who are trying to milk it to the maximum. Many medical experts have sounded the alarm on this business, saying the milk could be contaminated and pumping extra milk could be harmful to the women. Rachel Watson, a lactation consultant, warned that pumping excess breast milk to sell could be detrimental to the mother and baby. STORY CONTINUES BELOW THIS AD 'Pumping an extra 60 ounces a day, for example, is not normal. Women can get all sorts of problems from over pumping, including mastitis, nipple blebs, nipple trauma, and the microbiome gets disrupted in the breast. 'Your body is not designed to produce one more drop than your baby needs, so it's not physiologically normal to be doing this. And freezing also reduces the amount of fat, calories, and micronutrients in the milk,' she was quoted as telling the Daily Mail. Medical experts also note that in most cases of breast milk being sold online, there's been disease-causing bacteria. In some cases, breast milk had infectious disease, while in others there were environmental contaminants. In fact, a study conducted by Nationwide Children's Hospital in found that out of 101 samples of breast milk purchased online, 10 per cent of them was adulterated with cow's milk or baby formula. Moreover, 75 per cent of the samples had pathogenic or disease-causing bacteria/viruses in it. STORY CONTINUES BELOW THIS AD But all of this hasn't stopped the many mothers who have chosen this to be their side hustle. As Megan Lemmons from Los Angeles was quoted as saying, 'It's the most empowering, beautiful thing I've ever done in my entire life. I'm proud of my milk money.' With inputs from agencies
&w=3840&q=100)
Business Standard
34 minutes ago
- Business Standard
US visa update: B1/B2 interview waiver window cut from 48 to 12 months
Come September 2, 2025, the United States will implement new rules narrowing who can skip the in-person visa interview process. The updated policy will mostly affect travellers renewing B1/B2 visas (those issued for business and tourism), the US government said in a press release. Until now, applicants whose visas had expired within the past 48 months could apply for a renewal without attending an interview. That grace period will be reduced to 12 months under the new rules, as per revised guidance from the US Department of State. Current policy till September 1, 2025): From September 2, 2025): The eligibility window is reduced drastically: only those whose previous B1/B2 visa expired within the past 12 months can apply without an interview. What this means: — Fewer people will now qualify for dropbox or waiver processing. — More applicants will be required to appear for in-person interviews at consulates, increasing appointment demand and wait The change will mean many more applicants will now need to schedule in-person appointments at US consulates, potentially straining already stretched visa processing systems in countries like India. Notably, in 2023, over 700,000 B1/B2 (visitor) visa applications were processed for Indians by the US. More face-to-face interviews ahead For applicants used to the 'dropbox' route, this update could be a setback. The dropbox facility allowed people renewing certain visa types to simply submit documents without visiting a consulate. With the new 12-month expiry rule, only a smaller subset of applicants will now qualify. The policy also grants US consular officers the discretion to call any applicant for an interview, regardless of eligibility under the waiver programme. Fewer waivers, more checks The B1/B2 category isn't the only one impacted. Students on F-1 visas and professionals on H-1B will also be asked to appear in person if their previous visa expired over 12 months ago—even if they previously qualified for a waiver. Still, some categories remain eligible for interview waivers, including: Children under 14 Adults over 79 Applicants for diplomatic and official visas such as A-1, A-2, G-1 to G-4, NATO, and TECRO E-1 Applicants renewing diplomatic or official visas Mexican nationals with a Border Crossing Card/Foil, or applicants for B1/B2 visas applying from their country of residence without any past visa refusals or apparent ineligibility, may also be considered for a waiver. New Visa Integrity Fee to be charged Earlier this month, the Trump administration rolled out a new Visa Integrity Fee of $250 (around Rs 21,700). This fee applies to all non-immigrant visa categories and is collected at the time of visa approval—not during application. The Department of State has said the fee applies to most major categories including tourist (B-2), business (B-1), student (F, M), work (H-1B), and exchange visitor (J) visas. 'There are no exemptions for these groups. The fee will be adjusted every year based on inflation,' said a consular note issued to applicants.
