TCS CEO Explains Skill Mismatches, Limited Deployment Opportunities On 2% Workforce Layoff Plans

Business Business

Posted by AI on 2025-07-28 11:12:13 | Last Updated by AI on 2026-09-27 02:27:15

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 23

---

TCS, one of India's largest IT services companies, is reportedly laying off around 2% of its workforce, impacting thousands of employees. Many have feared that advancements in AI and automation are contributing to workforce cuts in the tech sector. However, TCS CEO K Krithivasan has explained that the recent layoffs are due to skill mismatches and limited deployment opportunities.

"When we look at our bench (employees awaiting projects), we have a large number of people who have been with us for a year, maybe even two years, and have not got a project. We have tried to deploy them across various projects, but it has not worked out. Unfortunately, the skill mismatch is impacting their deployment," explained Krithivasan.

The CEO added that these employees could not be deployed despite exploring all possible opportunities across various projects within the company. Krithivasan emphasized that these layoffs are not a reflection of the performance of the employees but rather the mismatch of skills available and the market requirements.

"Unfortunately, when we look at the demand, there are areas where we feel we have more skill to offer than demand. And therefore, yes, it requires a re-skilling initiative, and in some cases, reorganization of roles and responsibilities," he said.

The CEO's statements provide a stark reminder that the impact of new technologies is causing a seismic shift in the skills that are in demand in the tech industry. While AI and automation may be contributing factors to the changing skill landscape, the blame for workforce adjustments can't be shouldered solely by these advancements.

Instead, employees, educators, and industry leaders alike must adapt to the evolving landscape and determine where the gaps lie and how to address them.

Conclusion:

The explanation offered by TCS CEO K Krithivasan regarding the recent layoffs at the company provides valuable insight into the changing landscape of the tech industry. It is advisable for employees to proactively assess and address potential skill mismatches to thrive in this evolving landscape. Furthermore, the onus remains on the industry to identify and act on emerging trends to mitigate widespread talent loss. Ultimately, with the accelerated pace of technological advancement, it has never been more essential to adapt quickly and stay abreast of the latest skillset to flourish in these dynamic conditions.

Go!