In a major shift for India’s IT sector, TCS is set to reduce its global workforce by about 2 percent, impacting approximately 12,200 employees over FY26. CEO K Krithivasan recently confirmed this development, which marks one of the largest layoffs in the company’s history.
This move reflects a broader trend in the Indian IT landscape. According to UnearthInsight, the sector is grappling with a demand slowdown, with industry growth slipping from a healthy 7–10% to just 3–5%. On top of that, AI-led transformations are reshaping the nature of work, displacing traditional roles and shifting hiring patterns.
While you can’t control layoffs, you can control how prepared you are. Financial preparedness is your best insurance against temporary career disruptions. Here’s a practical checklist to get your money ready for unpredictable times.
Build an Emergency Fund – Your First Financial Defence
An emergency fund is non-negotiable. It’s the buffer that prevents you from falling into a debt trap or prematurely dipping into long-term investments when income stops.
🔸 How much to save?
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Single-income families: Aim for 12 months of expenses (including EMIs, school fees, rent, groceries, insurance premiums).
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Dual-income families (in different companies/sectors): 6 months may be sufficient.
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Dual-income, same company/sector/role: Treat it like a single-income risk and go for 9–12 months.
🔸 Where to park it?
Use liquid mutual funds, sweep-in FDs, or high-interest savings accounts — accessible but not too tempting to spend.
Have Independent Health Insurance — Don’t Rely Solely on Employer Cover
Many salaried individuals depend entirely on employer-provided health insurance. But what happens when your job ends?
🔹 Get a personal/family floater plan of at least ₹5–10 lakh.
🔹 Add a super top-up plan of ₹15–25 lakh for extended coverage.
🔹 Ensure your policy covers all family members and pre-existing conditions (after waiting periods).
💡 Bonus Tip: Buying early locks in low premiums and avoids health-based exclusions later.
Cut Discretionary Spending Before You’re Forced To
Don’t wait for a layoff to start adjusting your lifestyle.
Track monthly expenses: Separate needs (groceries, utilities, EMIs) from wants (restaurants, OTT subscriptions, gadgets).
Pause upgrades — car, phone, or home renovations can wait.
Delay big-ticket spending if you sense uncertainty at work.
This kind of frugality is not about scarcity; it’s about prioritizing stability.
Revisit Your Debt Exposure
Job loss with ongoing EMIs can quickly snowball into a credit crisis.
📌 Try to prepay high-interest loans (like personal loans or credit card balances).
📌 Maintain a good credit score by paying dues on time.
📌 Avoid new loans unless you have visibility on stable income.
If job loss becomes real, banks today do offer restructuring or EMI pause options — but it’s better to prepare than plead.
One Last Thing – Career Uncertainty Is the New Normal
We won’t go deep into non-financial aspects here, but do remember:
🧠 Keep learning.
💬 Stay connected to your network.
🧳 Keep your résumé and LinkedIn updated.
A financially prepared person can look for the right opportunity without desperation. That peace of mind is priceless.
Final Thoughts: Hope for the Best, Prepare for the Rest
A layoff is not just a company event — it’s a personal test of how well you’ve planned your financial life.
Think of your emergency fund, health insurance, and frugal habits as your personal “career safety net.” They won’t stop the fall — but they will make sure you bounce back faster.
💬 Have questions about building your own safety net?
📅 Book a free 1:1 call with me and let’s prepare, together.
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