TCS to lay-off over 12,000 employees, cuts across all sectors
What's the story
Tata Consultancy Services (TCS), India's largest software services company, has announced plans to cut 2% of its workforce. TCS has an employee headcount of 6,13,000. The decision will affect over 12,000 employees, as part of the company's strategy to adapt and prepare for rapid technological changes. The layoffs will be implemented across all countries and sectors where TCS operates during FY 2026.
CEO's message
One of the toughest decisions I've ever had to make
In an interview with Moneycontrol, TCS CEO K Krithivasan said the decision was one of the toughest he has ever had to make. He explained that it is a necessary step toward building a stronger, future-ready company. The move comes amid growing skill gaps and technological shifts, particularly in artificial intelligence (AI) and operating model changes.
Employee support
Decision will primarily impact middle and senior-level employees
Krithivasan emphasized that TCS has invested heavily in its employees, providing them with career growth and deployment opportunities. However, he noted that there are roles where redeployment hasn't been effective. The CEO said the decision will primarily impact middle and senior-level employees. He added that TCS is doing everything possible to make this process as compassionate as possible for those affected by the layoffs.
Future plans
Layoffs not due to AI-led productivity gains or macroeconomic factors
Krithivasan clarified that the layoffs are not a result of AI-led productivity gains or macroeconomic factors. He said they are aimed at addressing future skills requirements, rather than solely reducing headcount. The CEO also revealed that TCS has delayed onboarding at least 500 lateral hires who were supposed to join in June-July 2025. This decision comes after some delays in client decision-making during the April-June quarter.