In what appears to be a shocking turn, Tata Consultancy Services (TCS)—India’s flagship IT company—has reportedly initiated the process to terminate the services of around 12,000 middle and senior-level managers. This move, cloaked under the garb of “performance realignment” and “efficiency”, mirrors a dangerous trend: blind imitation of Western corporate models without understanding the Indian context or long-term consequences.
Short-Term Thinking, Long-Term Damage
At first glance, this mass trimming might appear as a smart financial maneuver. Cut the expensive heads, bring in fresh blood, improve margins—problem solved, right? Absolutely not.
Here’s why this is deeply flawed thinking:
🔴 1. Middle and Senior Managers Are the Custodians of Organisational Memory
These individuals are not just overheads—they are repositories of experience, mentors to younger staff, and often the glue that holds complex client relationships together. Lay them off, and you don’t just lose manpower—you lose decades of institutional insight and client trust.
🔴 2. Youth Cannot Replace Experience Overnight
Fresher employees bring energy—but they lack perspective, maturity, and domain depth. You cannot fast-track trust with clients, nor can you teach crisis management from a manual. By sacking experienced professionals, TCS is cutting off the roots that nurture its branches.
🔴 3. False Imitation of Western Models
In the West, job losses are somewhat cushioned by social security nets, unemployment benefits, and reskilling programs. India has none of these at meaningful scale. An unemployed 45-year-old manager in India doesn’t just lose income—he/she loses access to the economy. Families suffer. Communities suffer.
🔴 4. Cultural Consequences: Fear, Not Innovation
When seniors are axed, a culture of fear percolates. People stop innovating. They start complying. Nobody dares to speak up, challenge flawed decisions, or mentor juniors effectively. The organization becomes a soulless cost-cutting machine rather than a living, breathing centre of excellence.
“The Organisational Pyramid After Layoffs”
“Value vs Cost: A False Comparison”
💡An Alternate Model: Paying for Employable Days
Instead of mass firings, TCS can adopt a “pay-for-employable-days” model—a revolutionary shift where:
Employees are classified into deployment-ready, on-bench, and strategic reserve.
All are paid differently based on utilization, but none are fired prematurely.
The strategic reserve includes senior managers who:
- Train teams
- Step into crisis roles
- Participate in bid writing and delivery transformation
This model is dynamic, respectful, and far more sustainable than firing talent to make quarterly numbers look good.
🚨Final Thought
The Tata name once stood for trust and ethics. But this decision risks pushing TCS into the realm of cold, reactive corporates chasing stock tickers. You don’t build empires by firing loyalty and experience. You build them by nurturing people and respecting the human capital that brought you success in the first place.
Let us hope TCS reconsiders before this decision turns into the beginning of its decline.
Ajay Prakash (July 2025)