Is AI reason behind TCS layoff decision? Tata firm imparts AI training to… employees

TATA Consultancy Ltd Office

Why did Tata Consultancy Ltd (TCS) announced that it will eliminate 2% of the labor force or more than 12,000 employees? Is it because of artificial intelligence (AI)? However, TCS CEO, Krithivasan, rejected AI’s decision to dismiss because it could replace these workers. Instead, he said that the cuts were due to a skill mismatch and the inability to redistribute some of the company’s employees in the developing business model. ‘Money Control’, “This is not the artificial intelligence that provides approximately 20 percent productivity earnings. This is directed by places where we think that there is a skill incompatibility or we cannot deploy one.”

TCS gives AI training

“Some people, especially at high level levels, have difficulty in transition to heavy roles at high levels,” explaining the reason. He said. However, it continues to be the fact that TCS has invested in great investment in AI upskilling and education. In Temel AI, more than 5.5 Lakh employees and more than 1 Lakh employees in advanced skills. It is also a fact, and the company has admitted that reproduction does not always lead to employment, especially for senior professionals.

TCs with structural changes

TCs also undergo a structural change; Traditional “Waterfall” is moving into a more agile, product -centered model than the project management method. With this change, the need for traditional project and program managers decreased. Krithivasan stressed that this was a difficult and painful decision, and TCS’s dismissal would be sure that “very compassionate”. He said the company will provide severance pay packages, expanded health insurance, mental health consultancy and displacement support to the affected.