The structure of Indian IT’s legendary “pyramid model” is increasingly under pressure, especially from the middle tiers.
A Reddit post recently claimed that Tata Consultancy Services (TCS) compelled a seasoned employee to take early retirement without severance. This has gained attention against the backdrop of the company planning to cut about 12,000 jobs worldwide—around 2% of its workforce—in one of its most substantial layoffs to date.
According to TCS CEO K Krithivasan, the layoffs are driven more by skill mismatches and shifting business requirements than outright automation or AI replacing workers. He noted that senior staff, in particular, often struggle to adapt when roles demand more tech-centric skills or innovation. The company is evolving away from legacy operations toward more modern, tech-intensive roles, but this transition is proving difficult for some.
These changes are seen as a symptom of larger transformations in the Indian IT industry. As demands change—driven by generative AI, the push for cloud, automation, data science, etc.—employees whose skills don’t align are finding themselves edged out or left in roles that become increasingly obsolete. The “middle” of the pyramid, once seen as stable, is being squeezed, exposing gaps in upskilling, reskilling, and adaptability.
While companies are emphasizing retraining, there’s concern over whether current programs are robust enough, timely enough, or reaching those most at risk. The misfits are not unskilled in the broadest sense—but rather skilled in ways that are mismatched with what the market (and their employers) now demand.
