AI-led disruption may trigger more layoffs, says Nasscom

Following TCS’ announcement of laying off 2% or 12,000 of its workforce, IT industry body Nasscom said more workforce transitions are likely across the sector as companies shift to AI-powered, product-centric delivery models.

In a statement issued on Monday, the association said that as enterprises accelerate their adoption of artificial intelligence, legacy delivery structures, and the roles tied to them, are being reassessed. In the near term, this evolution could lead to further job rationalisation, particularly in functions that are no longer aligned with the emerging digital-first mandates.