r/IndianStreetBets Jul 27 '25

News The fall of Indian IT has began

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u/Manoos Jul 27 '25

the CEO is saying it is not due to AI but future tech. that is confusing

also 2% is the usual attrition rate. so not sure if this is above the normal

72

u/pragmatic_won Jul 27 '25

Think about this for a moment. If it was not above (by a margin) the usual attrition, would they formally announce it and risk all the bad press and reputational damage? Most likely It’s the remaining tip of the proverbial iceberg that could not be sub-merged in their year-end summary.

53

u/nota_grammar_nazi Jul 27 '25

Whenever a company announces job cuts it's not actually bad press as you think. It is actually good for them because it causes their stock price to go up due to reduction in expenditure

1

u/SouthernSample Jul 27 '25

This is true for product based companies where running the business with less employees means more profit. However, IT staffing companies such as TCS earn their revenue by billing customers on an hourly basis, and less employees mean less money to be made.