TCS Layoffs: Financial Planning Tips To Withstand Job Loss Shocks
The layoffs add to a trend in the global IT industry, where thousands of jobs have been cut since the start of the year.
Tata Consultancy Services (TCS) has announced a 2 percent cut in its global workforce, affecting around 12,000 employees. The move has created concern across India's IT sector, which is already under pressure from weak demand, an AI-driven reset and tariff uncertainty.
TCS chief executive officer K Krithivasan called it one of the hardest decisions he has taken. He described the step as necessary to build a stronger and future-ready company. The layoffs add to a trend in the global technology industry, where thousands of jobs have been cut since the start of the year. Slowing revenue, global uncertainty and rising automation are forcing companies to restructure and focus on artificial intelligence.
Experts say financial discipline is key during uncertain times like these. A job loss can create stress, but careful planning helps reduce the impact. Building an emergency fund is the first step. Ideally, savings equal to six to 12 months of household expenses and EMIs should be kept in savings accounts, short-term fixed deposits or liquid mutual funds.
If no emergency fund exists, individuals can generate liquidity by selling low-return insurance policies, underperforming mutual funds or even unused gold and silver.
Cutting discretionary spending is crucial. Dining out, OTT subscriptions and gym memberships can be paused. Big purchases like electronics or home appliances should be delayed. Households should prioritise essential expenses such as school fees, utility bills, insurance premiums, credit card dues and EMIs. Families may need to work together to revise their monthly budget.
Manage Loans and Credit
Loan EMIs and credit card bills must still be paid. A default can harm credit scores and increase interest costs. If needed, emergency savings can be used for repayments. Borrowers struggling for a long period can request a loan moratorium or extend the loan tenure, but this may increase the overall interest.
Avoid Using Retirement Corpus
Experts warn against using retirement savings such as NPS, PPF or equity funds for daily expenses. These funds should only be used in extreme situations, such as health emergencies or to prevent loan default.
Focus on Reskilling
Setting aside funds for reskilling or training can help in finding new jobs faster. With industries changing rapidly, upgrading skills can reduce the time between jobs and prepare employees for emerging opportunities.
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First Published:
July 29, 2025, 11:30 IST
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