When the countrys largest IT company Tata Consultancy Services (TCS) announced the layoff of 2 percent of its employees in FY26 it is considered to be just a beginning. The impact of this decision is now visible on the rest of Indias IT companies as well. Experts say that this layoff will deepen due to margin pressure outdated skills and the rapidly increasing reach of Artificial Intelligence (AI). TCS CEO and MD K. Krithivasan revealed that about 12200 employees will be laid off in a phased manner especially at the mid and senior levels. He described this decision as the most difficult. At the same time HCLTech has also indicated that in the coming months it will also make changes in its global structure and reduce the number of employees in some areas. Why has layoffs become the new trend? Lay offs have become a new normal in the IT industry. Earlier it was limited to performance or bench policy but now it is being seen as AI upgrade and margin focused strategy. Forresters research director Ashutosh Sharma said that if a stable brand like TCS can do this then it will become easier for other companies. Has AI completely changed the way of working? Experts believe that the advent of AI has completely changed the way of working. Many old skills have now become irrelevant. This is the reason why companies are adopting a strategy of giving opportunities to new AI-friendly talent instead of old employees. While on one hand this change points towards the transformation of the industry on the other hand it has emerged as a challenge for millions of IT professionals.