Tech and lay-offs
THE decision by Tata Consultancy Services (TCS) to lay off over 12,000 employees, or roughly 2 per cent of the workforce, reflects a sector-wide crisis. Artificial intelligence-led technology disruptions and demand uncertainties are forcing India’s once-celebrated IT services industry to effect structural changes. TCS claims the job cuts are owing to a skill mismatch and the inability to redeploy certain employees in its evolving business model. Its CEO’s assertion that AI-led productivity gains are not behind the move is unlikely to calm the industry or the markets. Cost-optimisation initiatives could see layoffs in other IT services companies as well. With AI fundamentally changing the rules of the game, how to be future-ready is bound to top the agenda of every business enterprise. Given this new reality, one question is of utmost concern — does this technological shift necessarily have to be at the cost of employees?
