Adverse effects of privatization: TCS will lay off 12,261 employees this year
Adverse effects of privatization: TCS will lay off 12,261 employees this year
🏢 The price of privatization: Human resources before profits?
Mumbai, July 27, 2025 — Tata Consultancy Services (TCS), one of the largest IT companies in the country, has announced the layoff of 12,261 employees this year. This news has become a matter of concern not only for the IT sector but also for the future of privatization and employment security in the country.
After this announcement, a debate has started among the industry, employees and experts that in the blind race of privatization and profits, is there no value left for human resources?
📉 What is the reason behind the layoffs?
According to TCS, the decision to lay off has been taken under the "strategic restructuring of the company". The company has said that this step has been taken due to the adoption of new technologies like automation, artificial intelligence (AI) and cloud shifting.
Reasons:
Change in client demand
Cost-cutting policies
Artificial intelligence and automation reduced human resource requirements
Decline in number of projects due to global recession
👨💻 Who will be affected?
Layoffs will primarily affect mid-level and entry-level employees, who make up the largest number.
Especially:
Young professionals with 0–3 years of experience
Non-coding and support roles
Outsourcing-based profiles
This will not only affect the livelihoods of those losing jobs, but will also create an atmosphere of uncertainty for the future.
📊 See the crisis in data
| Year | Number of layoffs | Main reasons |
| - | | | |
| 2023 | 5,200 | Impact of recession |
| 2024 | 8,900 | Technology upgrades |
| 2025 | 12,261 | Automation and profit optimization |
It is clear from these figures that year after year the dependence on human resources is decreasing, and companies are giving priority to technology.
🎙️ Expert opinion
Human resources expert Dr. Sanjay Gupta says:
“Companies should make a balance between profit and optimization. If an educated youth has to face frequent layoffs, then the social balance of the country will also deteriorate.”
IT analyst Mansi Joshi says:
“Automation is good, but before this an environment of skill development and re-skilling should have been created.”
🧠 What does privatization say?
When companies start making decisions only for profit and shareholder value, human resources, which are the backbone of any institution, are the first to be affected.
Privatisation:
Social security is reduced
Job stability is at risk
Labour rights are weakened
👥 Employees' pain
Many employees shared their pain on social media:
"Gave five years to the company, and ended the job with an email." - Pratik Sharma, former TCS employee
"After the layoffs, what about bank loans and children's fees now?" - Rekha Verma, software engineer
🔮 Towards the solution: What next?
To overcome this crisis, it is necessary to have:
Re-skilling programmes
Employment protection policy from the government
Employee support system under CSR (Corporate Social Responsibility)
Active participation of unions and governments
✍️ Conclusion
The layoffs of companies like TCS force us to think whether humans will be left behind in the race of privatisation and technology?
In a country like India, where the young population is the biggest strength, the job crisis can lead to social and economic imbalance.
The need of the hour is to give priority to humanity over profit, opportunity over automation and training over technology.