Tata Consultancy Services (TCS) will be able to cut about 12,000 jobs. This labor rearrangement, which only tends to affect most of the middle-level and high-paying workers, is a direct consequence of this business employing such technologies as artificial intelligence (AI) and automation at an increased rate.

Highlights:

• TCS is cutting approximately 12,000 jobs.
• Mid-level managers and senior staff are disproportionately affected.
• This workforce restructuring stems directly from AI and automation adoption.
• The cuts represent a strategic realignment towards AI-driven efficiency.
• Traditional project management roles are a primary focus of the reductions.

It is a direct result of TCS implementing AI and automation rapidly, which has led to this restructuring of the workforce. According to the company, the step is needed to increase efficiency in operation and streamline its talent reserves to meet the requirements of AI-enabled service delivery models. This massive decline is aimed at roles that are automated more and more by AI.

The lay-off will focus on those jobs related to conventional project management and delivery control jobs. TCS considers such a shift in the workplace to be due to the lack of necessity in having such jobs as AI tools will be used to conduct more actions. At the same time the company is expanding the number of those working in the field of AI development and data science.

The restructuring of a significant portion of the workforce by such a big industry player indicates the magnitude of change taking place in established IT service activities due to the implementation of AI. It highlights the fact that talent realignment in the sector is necessary as core activities change with increasing technological changes. Such a step indicates the logic of workforce reorganisation that AI incorporation demands.