What’s the real reason behind tech sector layoffs? The margin vs growth tightrope explained

The tech sector in India has been facing significant heat, especially after TCS announcement to cut 2% of employee strength. Demand caution and macro uncertainties, coupled with a cyclical downturn and emphasis on cost optimization spell out the challenges ahead. What’s further depressed sentiment is the constant chatter about layoffs and potential job losses. The prediction that layoffs may worsen going forward is no doubt casting a pall of gloom on the sector and overall business dynamics.