The Labour Minister of Karnataka, Santosh Lad, has said that the situation is worrying, as he said the development is alarming. The biggest IT services company in the country recently announced that it will downsize its workforce by 2 percent in the financial year 2025 26, a decision which will affect more than 12,000 of its employees spread across the globe. This has become one of the largest layoffs in the history of TCS.

Appearing before the reporters on Wednesday, Lad said, “This is something unique because suddenly out of the blue 12,000 people (that too of TCS), this is just an enormous number… it is an alarming number. Our people are talking with them, and I shall learn also the reason why. We will look into labour laws where necessary. The sunrise companies have enjoyed leniency in the past.”

The layoffs are also likely to be dominated by mid-level to senior-level professionals, though there are some junior employees, especially those who have been on the bench for a long time, who are affected.

The CEO of TCS, K Krithivasan, was quick to explain that they did not make that move based on AI-driven efficiency but were operating within a wider program of restructuring the company to make it more agile and future-ready. The reason is that we do not require fewer people, he explained. We will go on to attract and develop talent. This has to do with the possibility of deployment.”

To get ready ahead of the changing AI landscape, the corporation has already trained more than 550,000 employees in the fundamentals of AI and 100,000 in the professionally advanced AI. The latter, however, have been struggling as most of the older professionals shift towards newer modes of work, particularly those who were used to working with the older project frameworks.

Active intervention by the Karnataka government is an indication of the alarming situation concerning the likelihood of job security in the IT sector, which is experiencing a massive shift due to global market forces and changes in technology.

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