Three years on, AI is prompting IT services companies to cut workforce.
The company primarily attached the decision that would partially affect senior and middle employees.
“TCS is on its journey to become an organization ready for the future.” He said. “This includes strategic initiatives on multiple fronts such as investing in new fields of technology, entering new markets, distributing artificial intelligence for our customers and ourselves, deepening our partnerships, creating a new generation infrastructure and reorganizing our labor model.
“As part of this journey, we will also publish partners from the organization that cannot be deployed. This will affect approximately 2% of our global labor in the middle and senior classes throughout the year.”
This means that the TCS, which ends the June quarter with 613,069 employees, will leave 12,200 employees. Mint He learned that TCS wanted 100 employees in Bengaluru for the last two weeks.
TCS Job Cut shadowed the business model of India’s IT giants, which employed the encoder armies 30 months after Chatgpt’s release. Only two weeks ago, India’s third largest IT Services HCL Technologies Ltd, automation, replaced the work done by alumni potential dismissal.
HFS Research General Manager Phil Fersht, “AI’s impact, the human heavy service model eating and TCs such as large service providers, customers demand 20-30% price reductions on agreements to protect the profit margins in a segment market and to re-compel the price of price competitive prices,” he said.
“This trend will take about a year as they have to move to people who will compete to comply with the new AI model as they focus on educating young talents to work with AI solutions, and they have to act to comply with the new AI model, Fers Fersht said.
Meanwhile, the fourth largest Wipro Ltd plans English proficiency tests for senior executives. According to three managers, according to the three managers who increase their fears of dismissal, employees who progress in a bad way in the first example of their species can be subjected to performance improvement plans.
Read an internal e -mail shared with Wipro employees on July 19, “Please note that it is mandatory to get communication evaluation and cleanse. Mint. Read the E -Post of Wipro, “Not taking the assessment will invite the disciplinary penalty. Failure to clean up in an experiment will result in a performance improvement plan (PIP).” A PIP is usually seen as a start for termination.
A E -POSTA SEARCHING WIPRO was unanswered.
In HCL Technologies, unlike TCS and Wipro, where the heat is in the middle and senior employees, they are graduates in plus signs.
CEO C. Vijayakumar, on July 14, said in a statement to the analysts, “Of course, the release of good amounts of people due to productivity improvements. He said.
Vijayakumar said, “The time of education and redistribution is longer. Some will be re -deployed, but it may not be possible for others. Therefore, some changes in the sector are causing this.” He said. HCL did not specify what percentage of the labor force will be affected. An e -Posta remained unanswered.
The news of dismissal in TCS was first Moneycontrol On Sunday, it caused controversy on whether the disruption of artificial intelligence or the company’s low performance.
“This dismissal tour is completely slow growth.” He said. “Automation and Genai cannot change managers with 10 or more years of experience.”
Inadequate performance under TCS’s CEO on June 1, 2023, K. Krithivasan, caused concern between senior executives and several analysts. In June quarter, the company reported the slowest increase in income between the top five, and the sequential income decrease of 0.59% fell to $ 7.42 billion.
This is not a one -time. Between July 1, 2023 and 30 June 2025, the TCS increased from $ 7.22 billion in the quarter of 2023 June in June 2023, increased by 0.85% growth in this period and achieved a growth of 1.29, 0.85% and was achieved 1.29, but 1.29 was obtained.
For this reason, Kotak Corporate Stocks Analysts believe that TCS has lost brightness compared to its peers in recent years. “The relative flexibility of TCS (the ability to return from a shock) and the peers narrowed against the analysts Kawaljeet Saluja, Sathishkumar S. and Vamshi Krishna.
“TCS has not pioneered growth in the last two years, even when demand cost purchases. The performance in the developed markets in FY2025 was weak in North America.”
BMO Capital Advisors Analyst Keith Bachman said that the AI-related efficiency advantages may be meaningful over time between 20-30%. “Therefore, all service providers 1) Share and/ or 2) In order to maintain growth, they need to activate and capture new addressable market opportunities. We are concerned about the impact of long -term growth from AI efficiency.”
About a year after the release of Chatgpt, Bachman said, “First, all IT Service providers, the Robotic Process Automation (RPA) and the code stores that create pressure during billable hours, as well as new vehicles or recent solutions that create higher efficiency than each new vehicle or solution,” Bachman said.
