IT Sector Layoffs: There are going to be massive layoffs in the IT sector of the country. According to an estimate, by the end of this year more than 50,000 employees may have to lose their jobs. This number can also go up or down.

According to the Times of India report, about 25,000 people lost their jobs between 2023 and 2024. This year this number may double. To reduce their workforce, companies are adopting many tactics, such as sometimes firing people on the grounds of inadequate performance, sometimes delaying promotions or requesting voluntary resignation.

More people will be evacuated now

Recently, big IT companies like TCS and Accenture announced large-scale layoffs. On top of that, TCS also plans to lay off about 12,000 more employees by March 2026, which is 2 percent of their total workforce. At the same time, Accenture has laid off 11,000 of its employees worldwide between June and August.

Phil First, CEO of US-based HFS Research, told Times of India, this year many big companies secretly laid off many people. Neeti Sharma, CEO of Teamlease Digital, estimated that the number of IT professionals affected by layoffs could increase to 55,000-60,000 by the end of the year. In this era of Artificial Intelligence (AI), companies are laying off employees and taking the help of technology for their work.

Why are layoffs happening?

Companies in India are adapting themselves to the era of AI transformation. Ways of working are changing. By adopting AI, not only cost cutting is being done, but it is also a strategic change.

Apart from this, there are many other reasons for layoffs in the company such as geopolitical tension, America’s immigration policy, increasing cost of H-1B, etc. According to a Times of India report, companies with expertise in cloud computing, data analytics, AI and digital transformation are adapting to this change more successfully, while traditional outsourcing companies are facing the most disruption.

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TCS gives ‘good news’ amid continuous layoffs, announces 100% variable pay

Tcs salary hike: Tata Consultancy Services (TCS), India’s largest information technology service company, is going to give increments to most of its employees from next month i.e. September. This information has been given by TCS in an internal memo on Wednesday. Earlier, TCS had decided to lay off 12,000 employees, which was strongly opposed by employee organizations. Along with this, TCS had also announced a ban on salary hike (salary hike) citing global conditions.

80 percent staff will increase salary

Human Resource Officer of TCS Milind Lakkad and CHRO Designette K. Sudeep said in a mail sent to the employees on Wednesday that the salary increment will be applicable from September 1.

The TCS has taken this step at a time with the aim of rewarding and maintaining talent when the company has decided to pruning more than 12,000 employees as part of its comprehensive strategy to ‘prepare the organization for the future’. The company says that it will be focused on investing in technology, deployment of Artificial Intelligence (AI), market expansion and investment reorganization.

Relief for employees

Significantly, TCS has a grade structure, which starts with ‘Y’ (Y), which is given to the trainee. This is followed by C1, C2, C3, C4, C5, and B as well as at the end of the company’s staff. Last week, market analysts indicated that the salary of the remaining employees could be increased after the trimming. It is believed that other companies can also take a decision on the same lines.

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