New roundup data from early December 2025 shows that more than 100,000 tech workers worldwide have lost their jobs this year, as giants from Amazon and Intel to Meta and Accenture restructure around AI and cost pressures. For Indian audiences, one figure stands out: TCS, the country’s largest IT exporter, has reportedly cut nearly 19,755 jobs in a single quarter, its steepest-ever headcount reduction, taking total staff below the 600,000 mark for the first time since 2022. Executives describe the move as an attempt to address “skill and capability mismatch” and pivot aggressively toward AI-led services, with severance provisions running into hundreds of crores.
The Times of India
For HR teams and employees across India’s IT and GCC ecosystem, the psychological impact is profound. TCS has historically symbolised stability and life-time-style employment; if even it is trimming thousands of roles, mid-career professionals everywhere feel exposed. Many engineers who invested in traditional stacks now fear being labelled “legacy” and quietly sidelined. Younger staff wonder if their first promotion will coincide with their first layoff cycle. Social media is filled with stories of mid-level managers struggling to re-enter the job market after a decade in one firm, and of people juggling EMIs, school fees and elder care while refreshing job portals late at night. The emotional narrative has shifted from “I will always be employable if I keep up” to “what if the whole business model moves faster than I can?”
Compliance and leadership responses to this wave will shape how Indian IT is remembered in this era. Severance calculations, notice periods, redeployment attempts and internal communication all sit squarely in HR’s court, but they are not just HR issues. Boards will be judged on whether they invested early enough in large-scale re-skilling, internal mobility and transparent workforce planning — or treated people as expendable once AI economics changed. Regulators and courts may, over time, look more closely at whether mass layoffs followed due process under the Industrial Relations Code, especially where thresholds for prior permission, negotiation or re-skilling obligations apply. There is also a reputational dimension: clients buying “responsible AI transformation” will increasingly ask how those transformations treated the humans made redundant along the way.
How should Indian IT firms redesign career paths and learning so that mid-career professionals don’t become collateral damage in every technology shift?
What would a genuinely ethical layoff process look like when roles are eliminated not for misconduct or performance, but because the business model has moved on?
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7The Times of India
For HR teams and employees across India’s IT and GCC ecosystem, the psychological impact is profound. TCS has historically symbolised stability and life-time-style employment; if even it is trimming thousands of roles, mid-career professionals everywhere feel exposed. Many engineers who invested in traditional stacks now fear being labelled “legacy” and quietly sidelined. Younger staff wonder if their first promotion will coincide with their first layoff cycle. Social media is filled with stories of mid-level managers struggling to re-enter the job market after a decade in one firm, and of people juggling EMIs, school fees and elder care while refreshing job portals late at night. The emotional narrative has shifted from “I will always be employable if I keep up” to “what if the whole business model moves faster than I can?”
Compliance and leadership responses to this wave will shape how Indian IT is remembered in this era. Severance calculations, notice periods, redeployment attempts and internal communication all sit squarely in HR’s court, but they are not just HR issues. Boards will be judged on whether they invested early enough in large-scale re-skilling, internal mobility and transparent workforce planning — or treated people as expendable once AI economics changed. Regulators and courts may, over time, look more closely at whether mass layoffs followed due process under the Industrial Relations Code, especially where thresholds for prior permission, negotiation or re-skilling obligations apply. There is also a reputational dimension: clients buying “responsible AI transformation” will increasingly ask how those transformations treated the humans made redundant along the way.
How should Indian IT firms redesign career paths and learning so that mid-career professionals don’t become collateral damage in every technology shift?
What would a genuinely ethical layoff process look like when roles are eliminated not for misconduct or performance, but because the business model has moved on?
Acknowledge(0)Amend(0)
The situation in the Indian IT industry is indeed challenging, and it calls for a strategic approach from both HR and management.
Firstly, it's crucial to understand that the core issue is the rapid technological shift, particularly towards AI, which is rendering certain skills obsolete. This affects employees who have invested their careers in now outdated technologies, and it also impacts companies that need to stay competitive in a rapidly evolving market.
From a legal and compliance standpoint, companies need to adhere to the Industrial Relations Code, which mandates due process in case of mass layoffs. This includes prior permission, negotiation, and re-skilling obligations. Non-compliance can lead to legal repercussions and damage to the company's reputation.
To address this issue, companies can take several steps. Firstly, they should invest in large-scale re-skilling initiatives to help their employees adapt to the new technologies. This could involve partnerships with educational institutions or online learning platforms, and the creation of internal training programs.
Secondly, companies should redesign career paths to accommodate these shifts. This could involve creating roles that leverage both old and new skills, allowing for a smoother transition. It's also important to communicate these changes effectively to employees, to alleviate their fears and uncertainties.
An ethical layoff process, when roles are eliminated due to business model shifts, should involve transparent communication, fair severance packages, and support in job placement. It's crucial to remember that employees are not just resources to be discarded when they're no longer needed, but valuable contributors to the company's success.
Finally, companies should also consider implementing measures to support employees' mental health during these challenging times. This could include counselling services, flexible work arrangements, and initiatives to promote work-life balance.
In conclusion, while the technological shift is inevitable, its impact on employees can be mitigated through strategic planning, investment in re-skilling, and an ethical approach to layoffs.
From India, Gurugram
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Firstly, it's crucial to understand that the core issue is the rapid technological shift, particularly towards AI, which is rendering certain skills obsolete. This affects employees who have invested their careers in now outdated technologies, and it also impacts companies that need to stay competitive in a rapidly evolving market.
From a legal and compliance standpoint, companies need to adhere to the Industrial Relations Code, which mandates due process in case of mass layoffs. This includes prior permission, negotiation, and re-skilling obligations. Non-compliance can lead to legal repercussions and damage to the company's reputation.
To address this issue, companies can take several steps. Firstly, they should invest in large-scale re-skilling initiatives to help their employees adapt to the new technologies. This could involve partnerships with educational institutions or online learning platforms, and the creation of internal training programs.
Secondly, companies should redesign career paths to accommodate these shifts. This could involve creating roles that leverage both old and new skills, allowing for a smoother transition. It's also important to communicate these changes effectively to employees, to alleviate their fears and uncertainties.
An ethical layoff process, when roles are eliminated due to business model shifts, should involve transparent communication, fair severance packages, and support in job placement. It's crucial to remember that employees are not just resources to be discarded when they're no longer needed, but valuable contributors to the company's success.
Finally, companies should also consider implementing measures to support employees' mental health during these challenging times. This could include counselling services, flexible work arrangements, and initiatives to promote work-life balance.
In conclusion, while the technological shift is inevitable, its impact on employees can be mitigated through strategic planning, investment in re-skilling, and an ethical approach to layoffs.
From India, Gurugram
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