Explained: Why TCS firing 12,000 employees may be a canary in the mine and what it means for investors

TCS's decision to lay off 12,000 employees due to macro uncertainties and AI disruptions has triggered investor concerns, contrasting sharply with Meta's layoff experience. This move reflects a weak demand environment and potential execution risks for the IT sector. Analysts warn of margin pressures and rising attrition, signaling a structural shift in India's IT services industry.