TCS officially announced plans to position itself as the world’s largest AI-led technology services provider, backed by an enormous investment in AI infrastructure and the rapid expansion of its sovereign data centers across India. Over the next five to seven years, the company will pour $6.5 billion into these initiatives, with the aim of powering not only its own service lines but also enabling AI-ready solutions for governments and enterprises worldwide
The first phase alone will see $1 billion deployed for a 150-megawatt data center—the beginning of a staggered rollout targeting one gigawatt capacity by the decade’s end. Simultaneously, TCS doubled its AI-skilled workforce to 160,000 employees within a year and is running internal hackathons and digital challenges to upskill even more staff for high-demand roles.
Workforce Redefined: Layoffs, Reskilling, and Severance
With the industry shift toward automation and advanced analytical tools, TCS has recently confirmed the layoff of approximately 6,000 mid and senior-level employees in a single quarter, contributing to a net reduction of nearly 20,000 jobs since July 2025. However, employee unions claim the real number, including all voluntary and forced exits, could be much higher.
The company asserts that layoffs are not indiscriminate but result from strategic workforce planning that prioritizes reskilling and future-focused talent. Severance packages for affected employees range from several months to up to two years’ salary for those with long tenures, as part of efforts to soften the impact of this transition.
Despite the challenges, TCS’s Chief HR Officer highlighted increased investments in retraining—aiming to upskill around 100,000 employees annually—as a proactive strategy to help staff transition to new-age AI and digital roles instead of routine, repetitive tasks now conducted by machines.
Employee Pushback and Union Protests
The restructuring, however, has triggered strong reactions from labor unions and advocacy groups. Protests erupted at TCS campuses, especially in Bengaluru, accusing the company of “exploitative deployment policies” and coercion in forced resignations. Formal complaints have been filed, with the Karnataka State IT/ITeS Employees Union providing documentation of alleged forced exits and violations of the Industrial Disputes Act. Ongoing conciliation meetings with labor authorities are now underway, reflecting heightened tensions between workers and management.
Looking Ahead: A New Technology Paradigm
While the restructuring is painful for many, TCS’s leadership frames it as an essential step to remain relevant in a rapidly changing digital world. With global clients demanding more AI-centric offerings, the company intends to channel its resources into high-skill, innovative roles that combine human expertise with intelligent automation. In addition, TCS plans aggressive hiring in new markets, including creating 5,000 jobs in the UK over the next three years.
As other IT firms like Accenture mirror this shift, it’s clear that the age of AI is not just about technology—it’s reshaping how people work, learn, and build future careers in the digital economy.tct
