New Delhi: The National Association of Software and Service Companies (Nasscom) on Tuesday said more IT companies are expected to undertake layoffs in the coming months, following a recent announcement by Tata Consultancy Services (TCS) to cut 12,000 jobs this year.

In a statement, Nasscom attributed the expected layoffs to the increasing integration of artificial intelligence and automation in the sector.

"AI and automation are playing a significant role in reshaping delivery models and accelerating innovation and service efficiency to meet evolving customer demands. As a result, job redundancies may increase in the short term," Nasscom said.

However, the industry body added that such transformations, while disruptive in the immediate term, typically lead to the creation of new job roles and opportunities over the long run.

Meanwhile, reports indicate that TCS has also put on hold annual salary increments and lateral hiring of experienced professionals.