Layoffs, TCS, and the bigger picture

Intro

Layoffs aren’t just headlines—they’re a reality check.

A friendly note on reality
Let’s be real: layoffs happen—even at great companies. Businesses optimize for outcomes, not feelings. An employer doesn’t “owe” more than pay and agreed benefits—just like employees don’t owe endless weekends. That’s not cynical; it’s adulting at work. The smart move is to treat career security as a job: make impact visible, keep skills fresh, and stay close to where value is created.

What happened
On July 27, TCS reportedly announced layoffs affecting about 12,000 employees (around 2% of its global workforce). Multiple factors tend to be at play; it’s not solely about AI, and reasons vary by business unit and client context.

How companies decide who stays or goes

• Critical knowledge and dependency: Owners of core systems, processes, or client relationships are less likely to be cut.
• Sustained underperformance: If performance doesn’t improve after feedback and support, that role is at risk.
• Role alignment: Skills that don’t match current needs or a shift from “hired for A, now need B.”
• Cost vs. value: Compensation materially above internal bands without commensurate impact triggers review.
• Leadership leverage: Seniors who mentor and unblock others are protected; “title-only” seniors are vulnerable.
• Business fit: Work that no longer aligns with strategy, margins, or client commitments gets trimmed.
• Org layers: Middle-management layers that mostly pass status up/down are consolidated.
• Documented behavior risk: Prior insubordination or toxic patterns (with HR-backed documentation) can be a tiebreaker when seats are reduced.
• Financial optics: Sometimes headcount is reduced to meet margin, cash flow, or guidance targets.

Why layoffs happen

• Overhiring: Teams scaled for demand that didn’t fully materialize.
• Client dynamics: Clients cut budgets, delay projects, or shift scope.
• Efficiency drives: Process reengineering and tooling reduce manual effort.
• Financial pressure: Margin targets, currency swings, interest rates, or tighter credit.
• Policy and regulatory shifts: Visa limits, data-localization rules, compliance mandates, or tax changes can raise costs or restrict hiring.
• Market instability: Volatile markets and funding pullbacks pressure cash flow and force cost controls.
• Market/regulatory shocks: Geopolitics, trade restrictions, or sector-specific slowdowns.
• Strategy/roadmap misses: A product, geography, or vertical underperforms; budgets and teams are resized accordingly.
• Technology shifts: Automation and AI change the mix of required skills and roles.
• Corporate incentives and optics: Sometimes cuts are driven by profit targets, stock performance, or “discipline” signaling to investors—not purely operational necessity.
• Business underperformance note: Sustained underperformance by key clients or business units—leading to lower revenue and margin pressure—can trigger cost actions; while leadership makes strategic calls, reductions may still impact frontline teams after non-headcount levers are tried.
• Simple bad luck: Sometimes good people are cut due to seat reductions, not performance.

The AI question: what’s real

• Tasks vs. jobs: AI is strong at specific tasks (code scaffolding, tests, docs), not full roles end-to-end.
• Productivity lift: Developers using AI can move faster on boilerplate and code comprehension.
• Quality caveats: Output depends on context and review; hallucinations and integration gaps persist.
• Perspective check: The AI market feels like 50% hype and 50% unknown. If a bubble pops, expectations will reset. Keep learning programming, use AI as a tool (not a threat), and double down on domain knowledge—it compounds value beyond code generation.

How to Survive Layoffs (or Reduce Your Chances of Being Laid Off)

• Keep learning and upgrading your skills – Stay up to date with new technologies and industry trends so you remain valuable and adaptable.
• Make your work visible – Regularly share your contributions and successes so people know the impact you’re making.
• Understand your project inside out – Learn how features work, how they connect to the backend, and the overall workflow. When you deeply understand the system, you become the go-to person when issues arise—creating healthy job security.
• Communicate effectively – Clear, timely communication builds trust and helps you stand out as a professional.
• Build strong relationships with clients and superiors – A good rapport pays off in the long run, especially during uncertain times.
• Learn to decline tactfully – Sometimes you need to say “no” without actually saying “no.” Diplomacy is key.
• Stay out of office politics – Keep things professional, stay neutral, and avoid getting involved in conflicts. Keep conversations focused on work.
• Connect with your teammates – Build relationships both in and out of the office. If you’re ever let go, they might be your best allies in finding new opportunities.
• Pay attention to warning signs – If people in other departments are being let go, take it seriously. Update your résumé and start interviewing right away—don’t wait for things to get worse.

One-sentence takeaway

Layoffs usually stack multiple reasons—market reality, policy shifts, client budgets, strategy misses, and tech change—so the best defense is visible impact, role alignment, and continuous upskilling.

Disclaimer

This article was polished by AI for proofreading and grammar.