Is AI behind the layoffs in TCS? It’s a question that’s making thousands of IT professionals uneasy. If you’re wondering whether your tech job is safe as artificial intelligence reshapes the industry, you’re not alone. The recent TCS layoffs in 2025 have sparked fresh concerns, especially as more roles are being cut while AI becomes a central force in software delivery.

So, what’s really happening at Tata Consultancy Services? Is AI truly replacing humans? And how is Infosys managing to avoid the same fate?

• Why TCS is letting go of employees in 2025
• The role AI and automation are playing in the shift
• How Infosys is responding differently
• What you can do right now to protect or pivot your career

Let’s get into it—with examples and action steps you can use today.

TCS, India’s largest IT services firm, is undergoing a strategic workforce restructuring. While layoffs were minimal during the pandemic and post-recovery years, 2025 has marked a turning point.

Here’s what’s driving the change:

AI tools like GitHub Copilot, test automation platforms, and AI-based project monitoring tools are reducing the need for mid-level manual roles.

TCS is increasingly replacing 8–12-year experienced employees with lower-cost freshers or automating their tasks entirely.

Many legacy projects—especially in BFSI and retail—have either been completed or cut due to shrinking client budgets and changing tech stacks.

Enterprises are optimizing costs and demanding higher productivity from vendors like TCS, pushing them to do more with fewer people, just like we saw when Microsoft laid off 15,000 employees, raising questions about AI replacing human jobs.

Unlike past cycles driven by global recessions or client losses, this round is deeply linked to AI adoption. We’re no longer just talking about “doing digital transformation”—TCS is building delivery models that are AI-first, which means fewer hands are needed.

This isn’t just about firing people; it’s about changing the entire delivery pipeline.

Infosys has taken a noticeably different route. While TCS trims its workforce, Infosys is:

• Investing in reskilling programs for mid-level employees
• Continuing to hire freshers through campuses
• Building AI-focused internal labs to transition legacy employees into new-age roles

Rather than seeing AI as a job killer, Infosys is retraining existing staff to work with AI, not be replaced by it.

This model, though slower, is gaining appreciation across the industry for its long-term approach.

If you’re in tech and worried about job security, knowing which roles are under threat can help you plan your next move.

• Manual testers
• Support engineers handling tickets or L1 operations
• Project managers without technical specialization
• Business analysts without domain depth

• Prompt engineers and data scientists
• Cloud migration specialists
• DevOps and CI/CD experts
• Cybersecurity analysts
• Full-stack developers with experience in AI integration

The common factor in the “safe” roles? They involve decision-making, learning, or systems thinking skills that AI can’t fully replicate yet.

Start using platforms like:

• GitHub Copilot (code generation)
• ChatGPT + LangChain (prompt engineering)
• Dataiku or Azure ML (model deployment)

If you’re in finance, HR, or operations, learn how AI is being used in your vertical. Being a translator between business and AI is a powerful niche.

Look for internal projects that use automation or generative AI. Even if it’s just shadowing a team, get in.

Sites like Upwork now have a growing demand for prompt engineers, chatbot builders, and automation consultants. You don’t need to quit—start part-time.

In early 2025, TCS announced the release of nearly 12,000 employees, many of whom had been on the bench for several months. According to CEO K Krithivasan, these layoffs weren’t directly due to AI replacing jobs, but rather a growing skill mismatch. Despite offering internal reskilling programs, a large portion of mid-level staff couldn’t transition into new-age tech roles.

Meanwhile, Infosys reskilled over 275,000 employees in AI and automation tools, choosing to retain and reassign staff instead of cutting jobs.

This contrast highlights a simple truth:
Those who embraced AI tools and reskilling opportunities early were able to secure more future-ready roles.

Whether it’s building basic automations, learning prompt engineering, or applying AI in domain-specific use cases, the shift is already here. Companies are watching how fast their employees can adapt.

Yes, AI is behind the layoffs in TCS. But it’s also creating new roles, tools, and opportunities. The question isn’t whether AI will replace your job—it’s whether your job will evolve fast enough.

If you’re willing to learn, adapt, and experiment, you can thrive in this new era.

Here’s what you can do:

• Pick one AI tool to explore this week
• Connect with someone working in AI inside your company
• Start building your “AI-resilient” portfolio—one project at a time

The future belongs to those who adapt. Be the person who learns before they’re forced to.