TCS Layoffs: The ‘Sholay Era’ of Indian IT Is Over

TCS layoffs have reignited fears that the old ‘hire-and-hold’ model is dying. CP Gurnani says outcome-based, AI-driven roles will replace many old jobs — and employees must reskill fast or get left behind.
TCS Layoffs: The ‘Sholay Era’ of Indian IT Is Over
  • TCS’s recent layoffs are being read as evidence that the long-standing “Sholay” era of Indian IT — mass, tenure-based hiring — is ending.
  • CP Gurnani warns the industry is shifting to outcome-based contracts and specialised roles; some jobs may be lost to AI while others emerge.
  • Stricter bench policies and slower hiring are raising concerns about employee well‑being and the need for rapid reskilling.
  • The move signals rising pressure on mid-tier and legacy roles; professionals face a choice: adapt skills or risk redundancy.

Why CP Gurnani says the ‘Sholay era’ is over

CP Gurnani — speaking publicly after reports of layoffs at Tata Consultancy Services (TCS) — framed the changes as a structural shift in the Indian IT industry. He used the cultural shorthand of “Kitne aadmi the” from the film Sholay to underline how the old model of hiring large, generalist teams and keeping them on payroll is being dismantled.

From mass benches to outcome-based deals

Gurnani and other industry leaders argue that clients are increasingly demanding outcome-based pricing and tighter delivery metrics. That trend, combined with automation and AI, reduces the need for large, interchangeable employee pools that long defined the sector. Companies are moving toward smaller teams with specialised skills and measurable deliverables.

AI’s dual role: disruption and opportunity

Executives acknowledge that AI will displace some tasks — and by extension, some jobs — but they also stress that new opportunities will open for those with the right capabilities. Roles focused on AI oversight, automation engineering, domain expertise, and outcome validation are likely to grow. The immediate effect, however, is pain for workers in legacy roles who may not easily transition without targeted training.

Employee well‑being and bench policies under scrutiny

As bench policies tighten and hiring cools, concerns about morale and financial stability are rising. Gurnani’s comments highlight the human cost: when companies cut staff or refuse to renew bench periods, employees face uncertainty. Industry watchers warn that without investment in reskilling and better transition support, the sector risks reputational and social fallout.

What this means for professionals and companies

  • Employees: Upskilling in AI, cloud, automation, cybersecurity, and outcome measurement will be critical. Professionals should treat this as a signal to accelerate learning and reposition their careers around high‑value, specialised skills.
  • Companies: To avoid reputational damage and sustain productivity, firms should combine outcome-based models with humane transition policies — reskilling programs, clearer bench timelines, and mental-health support.
Bottom line

TCS’s layoffs — and CP Gurnani’s framing of them — are less about a one-off personnel move and more about a turning point for Indian IT. The “Sholay era” of scale-at-all-costs appears to be waning. For workers, the message is urgent: adapt or risk being left behind; for companies, the challenge is to balance efficiency with responsibility.

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