India’s IT Middle Class Threatened as TCS Lays Off Thousands Amid AI Shift

Tata Consultancy Services (TCS), India’s largest information technology company, is cutting over 12,000 jobs, signaling a pivotal transformation in the nation’s $283 billion software industry. The company’s drive to accelerate artificial intelligence deployment and reduce reliance on traditional business models has triggered unprecedented white-collar layoffs, especially among middle and senior management. This shift highlights a growing skills gap, as demand for AI expertise outpaces supply and intense global competition compresses margins. With the Indian IT sector reeling from weak hiring trends and pressure from both U.S. tariffs and AI-driven cost constraints, the wider economy faces mounting concerns over the future of the middle class, real estate, and consumption. As younger graduates struggle to find placements, analysts warn that India’s services-led growth miracle and employment engine are at risk unless the workforce adapts swiftly to technological upheaval.

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