TCS lays off 12,000 employees
HOW TO PREPARE FOR A JOB LOSS ?
Date 03.09.2025 : Tata Consultancy Services (TCS) has recently laid off a significant number of employees. Recent reports indicate that the company is cutting approximately 12,000 jobs, which represents about 2% of its global workforce . Such layoffs are not uncommon in the private sectors.
A large number of major companies across various sectors have resorted to layoffs recently. Some such companies who have laid off their staff include Microsft , Google , Intel, Cisco etc. This trend has been particularly prominent in the technology, media, and finance industries. The reasons cited for these cuts are varied, but common themes include a push for efficiency, corporate restructuring, and a strategic shift towards AI and other high-growth areas. The reasons for layoffs may be varied and employees have to be prepared for such eventualities.
Take the case of TCS :
Number of employees affected: Approximately 12,000 employees.
Targeted roles: The layoffs are primarily affecting mid-level and senior-grade employees.
Reason for layoffs: TCS has stated that the cuts are due to a “skill mismatch” and a strategic shift towards becoming a “future-ready organization” by investing in new technologies and realigning its workforce. However, many analysts and experts view the layoffs as a sign of a broader trend of AI and automation impacting the IT sector.
Industry context: This move by TCS is seen as a bellwether for the Indian IT sector, which has traditionally been a major source of employment. The layoffs have sparked concerns about job security and the potential for a larger wave of job cuts in the industry as companies adopt more AI-driven models.
Employee reaction: The layoffs have been met with protests and backlash from employees and unions, who have criticized the company’s practices and demanded government intervention.
The above data indicates that the affected employees are of middle age mid-level employees and the company feels that they lack new skills . So, what does an employee have to do in such circumstances? What precautions can an employee take to face such a situation?
Preparing for the potential loss of a job is a crucial part of career resilience in today’s unpredictable economic landscape. A proactive approach can significantly reduce the stress and financial hardship that often accompany a layoff. Here’s a comprehensive guide on how an employee can prepare themselves for such an eventuality.
1. Financial Preparedness
This is arguably the most critical step. Having a financial cushion provides peace of mind and allows you to focus on your job search without the added pressure of an immediate financial crisis.
- Build an Emergency Fund: The golden rule of financial planning is to have a cash reserve that can cover three to six months of essential living expenses. If you work in a volatile industry or have a highly specialized role that might take longer to replace, consider saving up to 12 months’ worth of expenses.
- Pay Down High-Interest Debt: When your income is uncertain, high-interest debt like credit card balances can quickly become unmanageable. Prioritize paying off these debts to reduce your monthly financial obligations.
- Create and Stick to a Budget: Understand exactly where your money goes each month. Differentiate between “needs” (rent, groceries, utilities) and “wants” (subscriptions, dining out, entertainment). By having a clear budget, you can easily identify where to cut back if necessary.
- Understand Your Company’s Severance and Benefits: Know your rights and what you can expect in the event of a layoff. This includes understanding the company’s severance policy, what happens to your health insurance (e.g., COBRA continuation in some countries), and your retirement plan (e.g., 401(k) or pension).
- Take Advantage of Current Benefits: While you are still employed, make the most of your health, dental, and vision benefits. Schedule any necessary appointments or get prescriptions filled to avoid out-of-pocket costs later.
2. Career and Skill Development
A “skill mismatch” is a common reason for layoffs. Staying relevant is key to career longevity.
- Embrace Lifelong Learning: The most resilient professionals are those who are constantly learning and adapting. Identify emerging technologies and trends in your field and actively work on acquiring those skills. This could mean taking online courses, earning new certifications, or attending industry workshops.
- Cultivate a Strong Professional Network: Don’t wait until you’re unemployed to start networking. Build and maintain relationships with colleagues, mentors, and other professionals in your industry. Many job opportunities are filled through personal connections and word-of-mouth.
- Actively Manage Your Career: Don’t rely solely on your employer to guide your career path. Reflect on your strengths and goals, and develop a personal brand that highlights the value you bring to an organization. Keep your resume and LinkedIn profile updated with your latest accomplishments and skills.
- Explore Side Gigs or Freelancing: Having an alternative source of income can provide a safety net. Whether it’s freelancing, consulting, or a part-time gig, it can help supplement your income and build new skills.
3. Mental and Emotional Well-being
Losing a job can be a deeply personal and emotional experience, affecting your self-worth and mental health.
- Develop a Growth Mindset: View potential setbacks as opportunities for growth rather than personal failures. Remember that a layoff is often a business decision and not a reflection of your worth as an employee.
- Prioritize Self-Care: During times of stress, it’s easy to neglect your physical and mental health. Maintain a consistent routine, including regular exercise, a healthy diet, and sufficient sleep.
- Build a Support System: Talk to trusted family and friends about your feelings. Join support groups for job seekers or reach out to a professional counselor if you’re feeling overwhelmed.
- Stay Positive and Proactive: While it’s normal to feel angry or sad, try to focus on what you can control. Set small, attainable goals each day, such as updating your resume, applying to a certain number of jobs, or reaching out to one new networking contact. Celebrate these small wins to maintain momentum.
By taking these steps, you can transform the uncertainty of a potential job loss into a period of empowered readiness, allowing you to navigate any career transition with greater confidence and resilience.
Final Thoughts
Job loss is not the end — it’s a transition. With the right financial discipline, skill upgrades, and mental strength, you can turn uncertainty into opportunity.
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