Explained: Why TCS firing 12,000 employees may be a canary in the mine and what it means for investors
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When Mark Zuckerberg announced in November 2022 that Meta would slash its workforce by 13% and lay off around 13,000 employees, shareholders celebrated the cost-cutting exercise with double-digit stock gains in the following days. But Tata Consultancy Services' (TCS) decision to fire 12,000 workers tells a vastly different story, one that has investors running for the exits. India's largest IT exporter has decided to lay off roughly 2% of its workforce, or over 12,000 employees, as macro uncertainties and AI-led technology disruptions continue to pummel business demand. The announcement sent TCS shares tumbling up to 1.7% to a day's low of Rs 3,081.20 on BSE, adding to the stock's brutal 25% decline in calendar year 2025. The pain spread to peers like Infosys, which fell 2% during the day. Also Read | TCS shares slip nearly 2% after company announces over 12,000 layoffs Why TCS layoff is worrying The contrast with Meta...