metro india news  I hyderabad

The IT Employees body, Nascent Information Technology Employees Senate (NITES), has alleged that India’s largest IT company forced nearly 2,500 employees in Pune to resign their jobs. NIRES president Harpeet Singh Saluja has requested the Maharashtra CH Devendra Fadnavis, for timely intervention to protect the interests of the affected employees.

TCS announced that I would lay off approximately 2% of its global workforce (12,261 employees) in June. However, TCS dismissed the allegations, noting that only a limited number of employees were affected to realign skills in our organisation. Those affected have been provided due care and severance.”

Industry experts point to two primary factors driving these layoffs: the rapid rise of AI and shifting geopolitical dynamics. AI has automated many processes traditionally handled by the company such as coding and testing, which were once key outsourcing services. Despite AI’s potential to create up to a million jobs in India, the country faces a significant shortfall in AI-skilled professionals, exacerbating the challenge. Experts note that the Indian IT sector, which saw 20-30% annual growth for decades, failed to adapt to emerging technologies like machine learning, focusing instead on short-term outsourcing gains.