‘Cost of 1 manager = cost of 5 junior developers’: TCS lays bare the new risk for India’s mid career techies


India’s middle managers are officially on notice. As Tata Consultancy Services begins slashing over 12,000 jobs—many in mid- and senior-level roles—the country’s largest IT employer is sending a message that echoes far beyond its own corridors: experience is no longer immunity.

TCS’s decision to cut 2% of its 613,000-strong workforce, largely from the middle and senior ranks, has reignited fears across the Indian IT sector about the diminishing value of non-billable, high-cost roles. Once considered stabilizing fixtures, these positions are now among the most expendable in a cost-sensitive, automation-led economy.

Online reactions have been blunt. “When managers are not billable, they are a huge cost to the company,” one X user wrote. “Cost of one manager = cost of five junior developers.”

Reports indicate that layoffs began in early July, impacting employees aged 24 to 55 across TCS offices in Bengaluru, London, and Princeton. While about a third of the exits are reportedly from the bench—those without live projects—others are said to be from active roles, selected through internal lists drawn up by business unit heads.

Some remote employees are also believed to be under review. One executive, quoted in media reports, said, “People on the bench with WFO [work from office] index issues are also getting released by the system.”

According to estimates cited in the same reports, the company could save around ₹3,000 crore based on average salaries of ₹25 lakh for affected employees. The timing has raised internal questions, given TCS’s ₹50,000 crore dividend payout this year.

“How do we communicate this to someone close to retirement, or someone managing loan payments or children’s education?” a senior executive was quoted as saying.

TCS insists this is part of becoming a “Future-Ready organization.” But the broader signal is clear: the mid-tier layer is being redefined—and where TCS leads, others in the industry may soon follow.

As one widely shared post on X put it: “TCS layoffs should serve as a warning shot for all mid and senior-level IT professionals. Many in this layer have stopped upskilling and are now vulnerable.”



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