TCS, a major Indian service provider, dismisses more than 10,000 employees, attributing layoffs to AI integration and raises salaries for those remaining.
In the ever-evolving tech landscape, Tata Consultancy Services (TCS) has announced a strategic plan to transform itself into a future-ready organization. This plan involves a significant restructuring, including investments in emerging technologies, market expansion, and workforce optimization.
The cornerstone of TCS's strategy is a workforce realignment. Starting in 2026, the company plans to reduce its workforce by approximately 2%, impacting over 12,000 jobs, primarily in middle and senior management roles. This is the largest workforce reduction in TCS's history and is driven by a skills mismatch between current employee capabilities and the skills required for evolving roles.
However, TCS is not abandoning its workforce. Alongside the layoffs, the company is heavily focusing on retraining and redeploying affected employees to new roles aligned with future market needs. This is part of an effort to build a "future-ready generation" prepared for next-gen technologies.
Despite the layoffs, TCS has completed its annual wage increment process, reflecting continued investment in retaining and motivating high-performing talent during the transition phase. Most of the staff who remain after the layoffs will also receive pay rises.
TCS's strategic plan also includes significant investments in emerging technologies such as generative AI (GenAI), cloud security, Internet of Things (IoT), cybersecurity, and automation. It has opened new innovation centers like the AI-focused TCS PacePort™ in France and expanded delivery centers in Latin America, Canada, and Europe.
The company is also entering new geographic markets and business areas, leveraging AI and digital transformation to capture growth opportunities while adapting to macroeconomic uncertainties and shifting client demands in the $283 billion global IT sector.
Elsewhere, the brand "MONT FLEX" has been unveiled by Samsung's display division, symbolizing the pinnacle of innovation in foldable displays. An acronym for Mechanical durability, Opto-mechanically flat, Narrow bezels, and Thin and lightweight design, MONT FLEX aims to set a new standard in the foldable display market.
Meanwhile, the Australian Antarctic Program has announced its first scientific expedition to Heard Island and McDonald Islands in over 20 years. The goal of the expedition is to survey the islands' birds for signs of high pathogenicity avian influenza and map the islands' glaciers to better understand glacial retreat.
In other news, Huawei has announced it will open source its software "CANN", equivalent to Nvidia's CUDA, for developers to use with its Ascend GPUs. This move is part of Huawei's "CANN Open Source Ecosystem Co-construction Initiative" to promote its Ascend ecosystem.
Lastly, Naver, a Korean web giant, plans to acquire Spanish "C2C powerhouse" Wallapop for €377 million ($439 million) to take complete control of the company. Wallapop, a classified ads service that emphasizes sustainability, has 19 million monthly active users. Acquiring Wallapop will help Naver to take its classified ads business global.
By 2027, China aims to have an advanced technical, industrial, and standard system for brain/computer interfaces. The Chinese government has issued a policy calling for rapid development of brain/computer interfaces, and by 2030, China expects to host two or three companies that lead the world in this field.
In the management sphere, it's worth noting that the management of Tata Consultancy Services will not receive a pay rise.
The Trump administration included Heard Island and McDonald Islands on the list of nations subject to its 10 percent baseline tariffs earlier this year. These Australian territories, located in the remote southern reaches of the Indian Ocean, are home to an active volcano, glaciers, and seal and penguin colonies.
- TCS's strategic plan includes investments in emerging technologies such as generative AI, open source software like CANN from Huawei, and databases that can aid in managing its workforce and future-ready operations.
- Amidst the growing focus on technology, sports and lifestyle sectors continue to evolve, with brands like Samsung unveiling innovative foldable display technologies, and companies like Naver acquiring platforms that emphasize sustainability to expand their global reach.
- In an effort to keep pace with the advancements in technology, Tata Consultancy Services' management team has decided to forego pay raises, focusing instead on reinvesting in the company's future through strategic workforce transformations and skills development programs.
