Layoffs at Indian IT giants like Tata Consultancy Services (TCS) are once again in the spotlight, with more than 12,000 job cuts approved internally for FY26. What’s more alarming, however, is the silence surrounding them. Official emails have yet to go out, leaving thousands of employees potentially on the list without even knowing it.
Adding to the anxiety, the tech industry at large is facing a wave of job cuts. Tech employees have been laid off recently at companies including Intel, Microsoft, Google, IMBM, infosys and other global majors. For employees in India’s IT sector, this is a wake-up call to start preparing financially before the axe falls.
To better understand how professionals can brace for layoffs, we spoke with Adhil Shetty, CEO of BankBazaar.com, who shared a clear strategy for financial readiness.
How much of current income should ideally be allocated monthly towards building a 12-month emergency fund, and where should one park it to keep it liquid yet inflation-protected?
There’s no fixed rule for how much to save. It depends on your income, expenses, and how much you want to set aside. What matters is saving regularly. Don’t push too hard, but follow a realistic plan to build your emergency fund over time. The goal here isn’t to earn returns, but to keep your money safe. So, choose an option that offers strong capital protection while also giving you easy access when needed.
Can you suggest safe and stable short-term income instruments or side investments to supplement salary, especially if layoffs happen?
Since you’ll only need the money in an emergency, consider keeping it in an auto-sweep account, which gives you both interest and easy access. You can also look at liquid funds. Another idea is to ladder your fixed deposits—this means splitting the money into multiple FDs with different maturity dates so that some part of it becomes available regularly.
Should one pre-pay their loans now or keep more cash in hand? What’s a better strategy during uncertain job scenarios?
It depends on the type of loan, the amount, and the interest rate. Focus on repaying high-value loans first, and try to keep your total borrowings low. This makes it easier to get credit if your situation changes. Don’t use your emergency fund to repay loans as you might need that money later, and borrowing again could be costly. Instead, plan your repayments well. Prepay when you can to reduce your debt, but not at the cost of important investments.
Key investment instrument that can help generate steady income through the year
If income becomes uncertain, keep liquidity high and income flowing. Monthly interest FDs, liquid funds, or SWPs can help. Continue SIPs only if they don’t stretch essentials. Rental income can support cash flow, but may not be steady. Get personal health cover if your employer policy ends. Cut extras, avoid fresh loans, and preserve capital.