Latest news with #Krithivasan
Time of India
a day ago
- Business
- Time of India
Troubles deepen at TCS; Honasa's beauty-tech plan
Troubles deepen at TCS; Honasa's beauty-tech plan Want this newsletter delivered to your inbox? Also in the letter: CS to freeze senior hiring, pause annual salary hikes Details: Onboarding of senior hires has been delayed by over 65 days. At the same time, the company has started phasing out hundreds of bench employees across multiple cities as part of a tighter utilisation push. More to come: Also Read: Past tense: Quote, unquote: Also Read: TCS layoffs draw government attention What's next: Union heat: Also Read: Honasa looks beyond beauty and skincare to new growth categories Driving the news: Growth channels: The numbers: Also Read: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Go Digit's first quarter profit climbs 37% to Rs 138 crore Details: Net profit of Rs 138.3 crore compared with Rs 101.3 crore a year earlier. of Rs 138.3 crore compared with Rs 101.3 crore a year earlier. Total income rose 4% to Rs 2,179.4 crore. rose 4% to Rs 2,179.4 crore. Expenses increased 3% to Rs 2,058.5 crore. increased 3% to Rs 2,058.5 crore. Gross written premium , i.e. the total premium collected before accounting for expenses, up 12% year-on-year (YoY) to Rs 2,981.8 crore. , i.e. the total premium collected before accounting for expenses, up 12% year-on-year (YoY) to Rs 2,981.8 crore. Net premium earned at Rs 1,865 crore. Agritech startup DeHaat posts profit in Q1, says founder Revenue in FY25 was at Rs 3,000 crore, up 11% year-on-year CEO Shashank Kumar said DeHaat's annual revenue run rate was at Rs 4,000 crore. He did not provide the profit and revenue figures for the first quarter. Keeping Count Other Top Stories By Our Reporters Wipro plans to open PCB unit facility: Navi Technologies raises Rs 170 crore via debt round: Mobile testing platform Drizz raises $2.7 million: Global Picks We Are Reading Happy Tuesday! After announcing over 12,000 layoffs, TCS now plans to pause senior hiring and annual appraisals. This and more in today's ETtech Morning Dispatch.■ Go Digit's Q1 report■ Wipro's PCB unit facility■ Navi debt raiseK Krithivasan, CEO, TCSDays after announcing plans to lay off 12,000 employees —roughly 2% of its global headcount—Tata Consultancy Services (TCS) is hitting pause on senior-level hiring and freezing annual salary hikes worldwide, according to people familiar with the slowdown is already say TCS's move could trigger a broader industry reset , with other IT majors likely to mirror the cost-control playbook, as they grapple with soft demand and margin far, no peer has announced layoffs at this scale, but the slowdown is real. TCS added just 5,000 employees in Q1 FY26, while rivals like Infosys have eased off 2017, Infosys, Wipro, and Cognizant collectively laid off thousands of employees due to automation concerns and stricter US visas. Later, between 2020 and 2022, companies carried out silent layoffs by extending bench periods and reducing new firm Jefferies said this may be a 'canary in the coal mine' moment for IT services. 'TCS's move to cut 2% of its workforce may lead to execution slippages in the near term and higher attrition in the longer run for the firm and reflects a weak demand environment for the sector,' the report IT Ministry is closely monitoring TCS's decision to cut 12,261 jobs – roughly 2% of its global workforce – as alarm grows over job losses at India's largest tech firm. Government officials are in touch with TCS, seeking clarity on the rationale behind the ministry may push for more aggressive skilling interventions and wants clearer insight into existing talent gaps. TCS, for its part, said it will offer severance packages, counselling support, and outplacement services to affected union Nascent IT Employees Senate (NITES) has urged labour minister Mansukh Mandaviya to halt TCS's plan to axe over 12,000 jobs , calling the move 'illegal' and demanding the reinstatement of affected its letter, NITES accused the IT giant of sidelining over 600 lateral hires and questioned the fairness of the layoffs, pointing to hefty executive pay packets. The union also called on the government to hold senior leadership Alagh and Ghazal Alagh, founders, Honasa ConsumerHonasa Consumer, the parent company of Mamaearth, is looking to expand into new product lines as its once-flagship brand loses company is exploring a range of beauty tech products, including laser masks, LED light therapy devices, facial rollers, and face massagers, sources told us. These high-margin categories, often associated with Korean skincare and haircare routines, are drawing growing interest from both Indian and global is also doubling down on its newer labels, notably The Derma Co. and Dr Sheth's, which are showing strong momentum. On its Q4 FY25 earnings call, CEO Varun Alagh said these younger grands grew over 30% posted operating revenue of Rs 2,067 crore in FY25, though net profit dipped to Rs 73 crore from Rs 111 crore the previous year. With Mamaearth plateauing, the company is not bettting on premiumisation and innovation to drive its next Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship Goyal, founder, Go DigitGo Digit General Insurance on Monday reported a nearly 37% rise in net profit for the first quarter on the back of growth in gross written agritech startup DeHaat posted a net profit for the first quarter of fiscal 2026 due to high-margin private label sales and exclusive agri-input distribution, along with increased focus on exports, storage and food Infrastructure Engineering (WIN) announced a new business division , Wipro Electronic Materials, on Monday, focusing on the manufacturing of high-performance materials for Printed Circuit Boards (PCBs).Flipkart cofounder Sachin Bansal's fintech venture Navi Technologies has raised Rs 170 crore through a debt funding round led by PhillipCapital, with NDX Financial Services, Arpee Commercial Company, Ambit Finvest, and Grey Grass India, among others, taking AI mobile app testing platform Drizz has secured $2.7 million in its maiden funding round , led by early-stage venture capital firm Stellaris Venture Partners. The funds will be used to advance the company's vision AI engine, expand its engineering team and strengthen research capabilities.■ From cheating exposés to dating background checks, TikTok detectives are thriving ( Wired ■ The truly worrying thing about the Coldplay concert scandal ( FT ■ BYD distracted the world while Chinese EV peers staged a coup ( Rest of World
India Today
2 days ago
- Business
- India Today
Tech jobs at risk? TCS lays off 12,000 and Trump wants tech hiring stopped in India, full story in 5 points
Are tech jobs, particularly in India and for Indians, at risk? Tata Consultancy Services (TCS) is laying off 12,000 employees as part of a major restructuring push to become more agile and future ready. At the other end, US President Donald Trump has instructed Big Tech – companies like Google, Microsoft, and others – to stop outsourcing jobs to India in order to boost domestic employment. advertisementNow, both these developments are not directly connected, but for Indian techies hoping to get a new job, or even hold on to their existing employment, all signs point to a future of great uncertainty. What is happening at TCS, which is one of India's top IT companies, or in the US where many young graduates aspire to go to and work, is concerning. There could be a myriad of reasons but one can't help but feel a bit shaken with the recent turn of those seeking answers and understand what's going on, here's a quick 5-point rundown of all the news and why it is unsettling to say the least: 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 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 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 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 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
Hans India
2 days ago
- Business
- Hans India
Global Tech Layoffs Surge as AI Reshapes Industry Priorities
A wave of job cuts is sweeping across the global technology sector in 2025, with major players such as TCS, Microsoft, Intel, Meta, and Panasonic laying off thousands of employees. The reasons vary—from internal skill mismatches to efficiency-driven restructuring—but a common thread is the increasing influence of artificial intelligence on business models and talent demands. TCS Cuts 12,000 Jobs Amid Skill Mismatches Tata Consultancy Services (TCS), India's largest IT services company, has announced layoffs impacting around 12,000 employees, amounting to roughly 2% of its global workforce. However, the company clarified that these job losses are not linked to AI-related productivity changes. TCS CEO K Krithivasan, in an interview with Money Control, said, 'The layoffs are happening because of limited options to redeploy employees who do not match current project requirements.' Despite extensive upskilling efforts, including training over 5.5 lakh employees in basic digital skills and nearly 1 lakh in advanced technologies, Krithivasan admitted that certain mid- and senior-level employees are struggling to transition beyond foundational training. The company continues to hire actively, but faces difficulty deploying those whose skills are no longer aligned with current demand. Microsoft Cuts 15,000+ Jobs Despite Strong Performance Microsoft has also downsized significantly, letting go of more than 15,000 employees this year. Additionally, about 2,000 individuals categorized as underperformers have exited the company. The layoffs come despite robust earnings and record stock prices. CEO Satya Nadella addressed employees in a memo, acknowledging the challenges of the restructuring process: 'I understand how difficult this period has been for everyone.' Nadella emphasized that the layoffs were essential to align with Microsoft's long-term strategic goals, particularly as the company allocates approximately $80 billion toward expanding its AI infrastructure. Intel to Cut 24,000 Jobs and Cancel Key Projects Among the largest workforce reductions comes from Intel, which is slashing 24,000 positions—nearly 25% of its global staff. New CEO Lip-Bu Tan announced the move during the company's latest earnings call. He explained the decision as part of Intel's effort to become 'leaner and more efficient' following overinvestment in areas where expected demand failed to materialize. As part of its shift, Intel is cancelling factory projects in Germany and Poland and relocating some operations from Costa Rica to Vietnam, impacting around 2,000 workers in Costa Rica alone. Meta Streamlines VR Division Meta has implemented fresh layoffs in its Reality Labs unit, the team behind its VR and AR innovations. While specific numbers weren't shared, sources indicate that teams involved in projects like the Supernatural fitness app were among those affected. Meta stated that the reorganization aims to 'streamline operations and improve focus on future mixed reality experiences.' Earlier this year, the company had already let go of 5% of its workforce, targeting underperforming staff as part of broader efficiency goals. Panasonic Targets 10,000 Job Reductions Panasonic has also announced plans to cut 10,000 jobs globally, with half of them in Japan. CEO Yuki Kusumi described the move as a necessary step to reposition the company away from slow-growth areas like televisions and certain industrial products. Expressing regret, Kusumi stated the decision was difficult but emphasized the importance of preparing for the future: 'These steps are necessary for long-term growth.' The company aims to invest more heavily in emerging areas, including artificial intelligence and advanced manufacturing. As AI continues to reshape corporate strategies, the global tech workforce is facing a critical period of realignment—pushing both companies and professionals to adapt faster than ever.
India.com
2 days ago
- Business
- India.com
TCS Layoffs: Modi government issues BIG Statement, says 'Keeping close eye on…', TCS CEO says Reason for this decision…
Indian technology giant Tata Consultancy Services has decided to lay off around 2 percent of its total workforce, impacting the jobs of around 12000 employees. According to a Moneycontrol report quoting government sources, the Ministry of Electronics and Information Technology (MeitY) is reportedly keeping a close eye on the developments surrounding this big decision. In the coming future, the government expects the industry and academia to address issues related to skilling and re-skilling. The report further states that approximately 12,000 employees—about 2 percent of TCS's total workforce—were laid off on July 27 as part of the company's efforts to become more agile and future-ready. 'Industry and academia will also have to address skilling and re-skilling related issues. We are keeping a close eye on all of this,' the source told Moneycontrol. TCS CEO Krithivasan on Layoffs In an exclusive interview to Moneycontrol, the TCS CEO Krithivasan said that the move by the company is not a reaction to AI adoption but a step toward future-proofing workforce skills. 'No, this is not because of AI giving some 20 percent productivity gains. We are not doing that. This is driven by where there is a skill mismatch, or, where we think that we have not been able to deploy someone,' Krithivasan also told Moneycontrol This decision will majorly impact some of the entry level associates who have been on the bench for a long time along with middle and senior level employees for the most apart. Employment Linked Incentive Scheme Additionally, the Union Cabinet approved a Rs 99,446 crore Employment Linked Incentive (ELI) Scheme on July 1. This aims to accelerate job creation with a special emphasis on manufacturing and also seeks to create over 3.5 crore new jobs over a period of two-years. Under this initiative, first-time workers can receive a one-time wage support of up to Rs. 15,000, and employers will be rewarded for job creation over the next two years.
Economic Times
2 days ago
- Business
- Economic Times
TCS to layoff 12,000 employees: What we know so far about the mass cull
Tata Consultancy Services, the largest software exporter in India, has announced layoffs that will affect around 12,000 employees, or 2% of its global workforce. The announcement follows suspense on salary hikes after a tepid June quarter, anxiety among staff over a new benching policy, and employee bodies decrying delays in lateral hiring. Here's a detailed look at all the issues: TCS layoffs: All you need to know The massive layoffs will primarily affect employees in middle and senior roles. Employees on the bench for a long time may also face the heat. The layoffs will happen across TCS's global workforce and will not be focused on any specific geography or industry domain. The IT major will complete the job cuts over the next three quarters of FY26. Job cuts for agility, not because of AI: CEO In a statement on the job cuts, TCS said it is on a journey to become a 'future-ready organisation', which calls for realigning the workforce model, among other things."Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible," the company said. Talking to Moneycontrol, TCS chief executive K Krithivasan emphasised that the retrenchment is not a case of AI taking jobs, but rather a skill mismatch issue. The company has been training employees in AI skills, but senior-level staff may not be able to use entry-level skills, causing issues with their deployment, the TCS CEO stated. What TCS is offering affected employees The laid-off employees will receive payments for their notice periods, along with a severance package, TCS said. The company said it is also looking to extend insurance benefits and other outplacement opportunities for the impacted employees. In its statement, the company said it will 'provide appropriate benefits, outplacement, counselling, and support' to employees 'as they transition to new opportunities.'CEO Krithivasan told Moneycontrol that the company will not rush the process. It will first talk to the employees identified for layoffs, and try to deploy them. If unable to do so, the fired staff will be given benefits as per the HR policy, he said.
