TCS to reduce 2% of its workforce, mainly in middle and senior management roles.
Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to cut approximately 2% of its global workforce — affecting around 12,261 employees — as part of a broader strategic realignment aimed at becoming a “future-ready organisation.”
As of June 30, 2025, TCS’s total employee count stood at 6,13,069, following a net addition of 5,000 employees in the April-June quarter.
Who Will Be Affected?
According to the company’s official statement and media reports, the layoffs will primarily target middle and senior management roles. TCS emphasized that the decision was carefully planned to ensure no disruption in the delivery of services to clients.
“We will also be releasing associates from the organisation whose deployment may not be feasible,” the statement noted.
Why the Layoffs?
TCS stated that the move is part of its transition into a future-ready enterprise. This includes:
- Deploying AI at scale for internal processes and client projects
- Entering new markets and enhancing global competitiveness
- Realigning the workforce to reflect changing business priorities
- Investing in new-age technologies
- Deepening strategic partnerships
“TCS is on a journey to become a Future-Ready organisation,” the company said. “This includes strategic initiatives on multiple fronts, including investing in new-tech areas, deploying AI at scale, and creating next-gen infrastructure.”
While TCS has stressed that reskilling and redeployment initiatives are underway, the company acknowledged that some roles are no longer feasible to retain — especially in non-deployable positions within middle and senior levels.
The layoffs are expected to roll out gradually over the course of FY26 and will not be limited to any specific geography or domain.
Background
The announcement comes at a time when major IT service providers are grappling with slowing growth and rising pressure to cut costs amid client demands for greater efficiency and lower prices. Automation and artificial intelligence are accelerating a shift away from traditional, people-heavy service models.
Earlier this month, HCLTech also indicated potential job cuts driven by automation, signaling a broader industry trend.
TCS’s restructuring is part of a strategic push to remain competitive in a rapidly evolving tech landscape — one where AI, cloud, and automation are reshaping not just how services are delivered, but who delivers them.
