The Indian IT sector has long been a key pillar of economic growth. It employs millions and plays a major role in driving exports. For years, it has been viewed as a relatively stable career option.
However, recent developments suggest deeper challenges ahead. Even the most stable players are now showing signs of stress, raising concerns across the industry.
A viral post by @mainbhiengineer cited a CNBC report claiming that TCS cut over 30,000 jobs in six months despite rising profits. This revelation triggered widespread anxiety among IT professionals.
TCS, often compared to a “government job” for its perceived security, has denied large-scale layoffs. The company stated that the move was a 2% workforce trim, impacting around 12,000 to 20,000 roles.
Unions such as UNITE, however, have alleged that the actual number of job cuts could be closer to 30,000. According to reports, most of the affected roles belong to mid and senior management due to skill mismatches and restructuring.
While profits remained strong overall, TCS reported a 12% quarter-on-quarter dip in Q3 FY26 net profit to INR 106.6 billion. The decline was attributed to one-time costs related to new labour codes and severance payouts, even as revenue rose 4%.
The viral post also noted that these job cuts exceed the combined layoffs of all Nifty 50 firms. This scale of reduction surprised many market watchers.
Social media reactions reflect growing unease about the job market. Netizens are blaming a mix of factors, including global uncertainty, weak demand, and a shift towards agile operating models that require fewer managerial roles.
TCS has clarified that artificial intelligence is not the sole reason behind the cuts. The company has emphasised the need for upskilling and closing capability gaps.
Industry observers warn that if a giant like TCS is under pressure, smaller IT firms could face even tougher conditions. Freshers and experienced professionals alike are being urged to adapt quickly.
While the Indian IT sector is not collapsing, the message is clear. Proactive reskilling and adaptability will be crucial to surviving the current phase.
If a relatively safer company like TCS is doing this then we can only imagine the condition of overall job market.
Something is seriously broken in Indian IT sector and it can’t be just AI. pic.twitter.com/MrG1AlL1iV
— EngiNerd. (@mainbhiengineer) January 13, 2026
