TCS axes 12,000 jobs; Ola loses steam in EV race

Happy Monday! India’s largest software exporter is trimming 2% of its workforce as demand woes persist. This and more in today’s ETtech Morning Dispatch.

Also in the letter:
■ Lenskart IPO plans
■ Quick fashion plays ‘no return’ game
■ Mid-tier GCC hiring picks up

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K Krithivasan, CEO, TCS

Tata Consultancy Services, India’s largest software exporter, is laying off over 12,000 employees—about 2% of its 613,069-strong workforce—as macro headwinds and disruptions weigh on business demand.

Quote, unquote: “TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the company said in a statement.


Parting gift:

• Affected employees will receive payment for their notice periods and an additional severance package.
• TCS will continue insurance coverage and offer outplacement assistance to help transition.
• The company also plans to provide counselling and support as laid-off staff explore new opportunities.

Hiring slack: The top six IT firms added just 3,847 employees in the June quarter, down 72% from 13,935 in the March quarter.

Only TCS and Infosys reported a net headcount increase during the period.

Also Read: Techies write to govt as TCS delays onboarding of 600 lateral hires



Ola’s AI unit, Krutrim, is laying off most of its linguistics team, just months after hiring them. The move follows a pivot in company strategy and delays in funding.

Tell me more: Around 100 full-time linguists, hired to train Kruti, Ola’s new AI assistant, are being let go, according to people familiar with the matter.

Zoom out: According to internal documents reviewed by ET, the layoffs stem from a shift in organisational priorities triggered by external pressures.

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Bhavish Aggarwal, CEO, Ola Electric & Tarun Mehta, CEO, Ather

Ola Electric’s pivot from aggressive growth to profitability is starting to show cracks. Its market share in the electric two-wheeler segment slipped to 17.2% as of July 27, with rival Ather Energy now breathing down its neck at 16.5%.

Volume slide:

• The volume gap between the two has shrunk dramatically. Only 526 units separated them in July, down from over 5,000 in June.
• It isn't just an Ola problem. The overall EV two-wheeler market contracted by 21.6% month-on-month in July.
• Legacy players TVS Motor and Bajaj Auto also suffered, reporting sharp sequential drops of 31% and 27.4%, respectively.

Rare earth concerns: Much of the slowdown stems from a growing supply crunch.

• China’s curbs on rare earth magnet exports have begun to bite, forcing several EV makers, including Ather, Bajaj, and TVS, to prepare production cuts, as we reported earlier this month.
• These magnets are critical to motors that power most electric scooters.

Also Read: Bajaj Auto stares at big risk of 'zero' EV production in August due to China's rare earth move, MD Rajiv Bajaj

Ola’s challenges: Ola, meanwhile, is grappling with more than just supply issues.

• Sales data discrepancies, vehicle quality complaints and missing trade certificates at several of its retail outlets have added to the pressure.
• The company’s stock has been underwhelming since its debut, closing Friday at Rs 41.2 on the BSE, nearly half its IPO price of Rs 76.

Also Read: Ola Electric Q1: Revenue halves, losses widen to Rs 428 crore

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Peyush Bansal, CEO, Lenskart

Lenskart shareholders have approved the eyewear retailer’s plans to raise Rs 2,150 crore ($250 million) through an initial public offering (IPO), according to regulatory filings with the Registrar of Companies.

Driving the news: At the annual general meeting on Saturday, the omnichannel brand secured the go-ahead to tap the public markets, a major step in its expansion playbook.

Road to listing:

• Lenksart is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in the coming days.
• The total issue size is likely to be around $1 billion, according to people aware of the matter.

All aboard:

• PaySense cofounder Sayali Karanjkar and IndMoney founder Ashish Kashyap have joined the board as independent directors.
• Peyush Bansal takes charge as chairman, managing director and CEO of Lenskart.
• Neha Bansal and cofounder Amit Chaudhary have been appointed executive directors

Also Read: Lenskart secures shareholder nod to raise Rs 2,150 crore via IPO

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Startups in the 60-minute fashion delivery race are leaning on ‘try and buy’ options and artificial intelligence (AI)-powered virtual try-ons to tackle one of ecommerce’s thorniest problems: high return rates.

Returns in focus:

• Knot said partner brands that see almost 20% return rates online are now clicking under 1% in offline trials, thanks to digital interventions.
• Slikk, which is testing an ‘instant returns’ option, claimed return rates are 40–50% lower than on traditional platforms.
• Other venture-backed startups such as Zilo and Zulu Club are also experimenting with similar tools.
• Myntra, meanwhile, said its MNow quick delivery offering is seeing fewer returns, citing shorter delivery windows as the reason.

Investor interest: Investors believe these features could slash return rates by 15–20 percentage points, unlocking serious savings for both platforms and brands.

• For labels, it is a way to prevent sales loss from stuck inventory.
• For shoppers, it means less money is held up in refund cycles.

Old idea, new bets: Myntra first tried this in 2016, but the idea fizzled out due to supply chain constraints and patchy delivery networks, industry executives told us. Now, logistics have improved, but challenges remain.

Viability question: Try-and-buy increases costs, as delivery executives must wait while customers decide. Some items still get returned, straining already tight logistics.

Also Read: Rapid fashion delivery gathers pace, but long-term viability in question

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GCC hiring hotspot: Hiring by mid-size GCCs, defined as those with 500–2,000 employees, increased by 10–12% in the six months ending June, compared with a 4–6% growth among large GCCs, according to data from staffing services provider Quess Corp.

Amagi Media files for IPO: According to the draft IPO papers filed with the market regulator, Amagi plans to raise Rs 1,200 crore through a fresh issue of shares. Additionally, investors such as Norwest Venture Partners, Accel, and Premji Invest plan to sell up to 34.2 million shares through an offer for sale (OFS).

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