TCS layoff shocker has a lesson for all IT pros
The decision apparently comes in the backdrop of macro uncertainties and AI-led technology disruptions that are impacting business demand, one way or the other. However, the exit will not be in one go but in a phased manner.
TCS is such a big player on the global firmament that the tremors of this announcement are being felt, quite naturally so, in the stock market. As an immediate reaction, not only did its share prices tumble by around 1.7% to a day's low of Rs 3,081.20 on BSE but also had its bearing on those of other IT giants like Wipro, HCL Technologies and Infosys, who were down by almost two per cent apiece, while Nifty IT was down by over one per cent. On that count, even staffers from other IT firms may be concerned about their own survival if their employer's follow the TCS example and resort to a similar cost-cutting measure. This fear is not unfounded. During the torturous Covid crisis, many software professionals had to look for jobs beyond their areas of expertise.
The decision has sparked huge debates as regards the reason for the layoff with many pointing out that this was largely influenced by its plans to foray into new markets, adopt fresh technologies and go whole hog into AI integration. Given that automation is gradually reshaping the IT job market. This theory was put to rest by the tech giant's CEO K Krithivasan, who refused to buy the argument that the job cuts were indicative of AI replacing human workers. In all fairness, one must see the logic behind the TCS move. He was firm that the transition was to suit the requirements of their myriad clients, in line with the precedent set by Microsoft years ago. Meanwhile, his clarification that it was professional mismatch that led to the layoff is quite a genuine reasoning. Any employee who fails to upgrade himself to the latest in automation will be a liability, a white elephant, to the organisation.
TCS has in fact trained over 5.50 lakh employees in basic AI skills and around one lakh in advanced AI to make them ready for the next tech wave. Those relying on time-tested, but fast eroding, methods cannot be accommodated in the AI era.
IT professionals must align with the emerging technologies, structural and strategic shifts and keep pace with the future demands or look for openings in unrelated fields. The TCS shocker has a lesson for every IT employee-stay updated or be out of the reckoning.
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