TCS layoffs: Stocks are down 2% today
What's the story
Stocks of Tata Consultancy Services (TCS) fell nearly 2% today after the firm announced plans to lay off around 12,000 employees this fiscal year. The company's stock price dropped by 1.69% to hit ₹3,081.20 on the Bombay Stock Exchange (BSE), and by 1.7% to ₹3,081.60 on the National Stock Exchange (NSE).
Layoff details
TCS's workforce reduction strategy
TCS, India's largest IT services company, plans to cut about 2% or 12,261 employees from its global workforce this fiscal year. The majority of those affected will be from middle and senior management levels. As of June 30, 2025, the company's headcount stood at over six lakh employees after adding around 5,000 in the last quarter.
Company statement
Company's response to the layoffs
In a statement, TCS said the workforce reduction is part of its strategy to become a "future-ready organization." The company is focusing on technology investments, deployment of AI, market expansion, and workforce realignment. "As part of this journey, we will also be releasing associates from the organization whose deployment may not be feasible," it added.
Employee support
TCS to support affected employees
TCS has assured that it will offer appropriate benefits, outplacement, counseling, and support to the employees who are laid off. The announcement comes amid subdued revenue growth for India's top IT services companies in Q1 FY26, due to macroeconomic uncertainty and geopolitical tensions affecting global tech demand and client decision-making.