Rumors on social media claiming that Tata Consultancy Services (TCS) has laid off 80,000 employees have caused a major stir in the IT industry. However, TCS officially denied these claims, stating that the actual number of layoffs this year was around 12,000 in August.

Analysts believe that the rapid growth of Generative Artificial Intelligence (AI) over the past two years is a key reason for workforce reductions in the IT sector. AI is increasingly capable of performing tasks like coding, leading companies to reduce mid-level and senior employees. Similarly, Accenture recently laid off approximately 11,000 employees.

Tech experts advise employees not to fear AI, but to use it as a tool to enhance their skills. According to Google AI Chief Dr. Jeff Dean and Perplexity AI co-founder Aravind Srinivas, professionals who adopt AI skills are likely to become more valuable to companies and will have better employment opportunities in the future.