Major IT companies like TCS HCLTech and Infosys have announced massive layoffs in the recent weeks despite steady revenue growth leading to several questions. As per the recent update major Indian IT companies like TCS Infosys Wipro and HCLTech are cutting jobs and slowing hiring. TCS laid off over 12000 employees (2%) Infosys paused fresher onboarding and Wipro is trimming roles selectively. However readers should note that the layoffs aren’t due to financial distress. In fact the IT companies saw Q1 FY26 saw revenue growth. Why IT companies are doing mass layoffs? Experts say that the traditional headcount-driven growth model is being replaced by automation-led productivity with GenAI and intelligent platforms reducing dependence on entry-level hiring. Reports also say that the IT firms are abandoning the old pyramid structure raising the bar for fresher training and focusing recruitment on niche skills like AI cloud and cybersecurity. Consequently revenue per employee is rising and bench strength is shrinking leading to more and more layoffs. Reports also say that the layoffs reflect a strategic pivot toward automation AI integration and a more lean skills-based workforce rather than financial distress. TCS shares trade lower after layoff of 12200 employees As a result of the lay off news shares of tech major Tata Consultancy Services (TCS) were trading lower on Monday. As per a report by IANS news agency the share had slipped 1.7 per cent to an intra-day low of Rs 3081 on BSE. Indias largest IT exporter on Sunday announced plans to lay off around 2 per cent of its global workforce. The IT giant which has a total headcount of 6.13 lakh employees as of June 2025 plans to implement the layoffs across various domains and geographies. In a statement the company said the layoffs would primarily impact middle and senior grades. TCS CEO K Krithivasan described the decision as “one of the toughest” he had to make and said it is aimed at making the company future-ready and agile in the face of rapidly evolving technologies and workplace models. (With inputs from agencies)