Two per cent doesn’t sound like much until you realise it means 12,000 people. That’s the estimated number of employees who may lose their jobs at TCS over the next year, according to recent reports. For a company with over 6.13 lakh employees and an annual profit of more than Rs 45,000 crore (approximately $5.6 billion) in FY24, this isn’t a move driven by financial distress. It’s a strategic decision. And it isn’t an isolated one.
Intel is reportedly preparing to cut close to 15,000 jobs. In their case, it’s more understandable. They ended FY24 with a reported loss of $18.8 billion. But what about Microsoft, which earned over $88 billion in profit last year? Or Meta, which made more than $62 billion? These are not companies struggling to survive. These are companies that are doing incredibly well. They are setting revenue records, investing in artificial intelligence (AI), and pleasing shareholders. Yet, they are asking thousands of employees to leave.
With startups across India having frozen hiring, over one crore Indians are chasing a shrinking pool of government jobs. With fewer openings in the private sector, many young aspirants are being pushed towards the public sector, where opportunities remain limited and competition only gets tougher.
The social impact of all this is quietly building beneath the surface. For many Indian families, a private-sector job represents more than just a paycheck. It is hope; it is dignity; and it is the promise of progress. So what happens when that door starts closing? What happens when someone who has shown up every day, delivered results and stayed loyal, is asked to leave not because of non-performance but to boost margins?
Globally, some of the most admired companies seem to be following the same playbook, including Google, Meta and Salesforce. Strong profits, large layoffs, and in many cases, stock prices actually went up afterwards.
Yes, businesses need to adapt. Sometimes roles become redundant. Restructuring is often necessary. But when a company is thriving, and profits are soaring, should job cuts still be the first lever to be pulled?
This isn’t about pointing fingers. It’s about pausing to think. Is there a better way to grow? Can we find a middle path that balances financial discipline with human decency? Because behind every job lost is a person, a family and the future. In a country such as ours, where one salary often supports multiple generations, the ripple effect of that loss is far-reaching.
Leadership isn’t just about taking hard calls. It’s about taking the right ones. It’s about recognising that organisations aren’t only judged by the wealth they generate but also by the trust they build. As Environment, Social and Governance (ESG) becomes part of boardroom conversations, the ‘s’ in ‘social’ cannot be an afterthought. It has to be central. Not because it’s good optics but because it’s the right thing to do. After all, in the end, companies aren’t built on spreadsheets but on people. While stock prices may rise, long-term success depends on whether the people who helped build the company feel seen, valued and protected.
Indeed, top executives win when stock prices rise. But who stands up for the people who helped build the company?
The author, Raj Nayak, is the founder and managing director of House of Cheer, the company behind the Happiest Places to Work® Certification. This pioneering, purpose-driven validation is fast becoming the gold standard for recognising organisations where employees genuinely feel happy, valued and involved.
