TCS asks managers to mark 5% Band D after layoffs

Business May 18, 2026

Tata Consultancy Services (TCS) just asked managers to place about 5% of its employees in the lowest category, called Band D, during recent appraisals.
This follows its biggest round of layoffs ever (12,200 jobs cut by March 2026) as TCS tries to manage costs with AI and new billing models shaking up the IT industry.

Band D can mean salary cuts

Landing in Band D isn't great: it can mean salary cuts, being taken off projects, and having to follow strict improvement plans that could lead to losing your job if targets aren't met.
This move comes right after about 3% of staff were already marked as underperformers.

TCS stock falls nearly 30%

Even though TCS slightly improved its profit margins this year, it saw its first revenue drop since going public and its stock fell nearly 30%.
Other big IT firms like Infosys and HCL are facing similar challenges too.