Stocks of Tata Consultancy Services (TCS), India’s biggest IT services company, slipped almost 2% on Monday. This came after the announcement that the multinational company plans to lay off around 12,000 employees worldwide this year. The move is in line with a plan to turn the company into a leaner, “future-ready organisation.”
TCS Will Drop 2% of Its Employee Base
The layoffs will affect nearly 2% of TCS’s global employee base, which was 6,13,069 people as of June 30, 2025. Even with the intended reduction, TCS has added 5,000 employees to its workforce during the April–June quarter of the ongoing financial year (Q1FY26). Nevertheless, the majority of the employees who will be hit by the impending layoffs are from the middle and senior levels.
In a formal statement, TCS stated the move is part of a larger strategy to synchronise its talent plan with business agendas like technology transformation, deployment of AI, and business growth.
“Toward this, several reskilling and redeployment efforts have been in progress. As part of this process, we will also be releasing associates of the organisation whose deployment might not be viable,” the firm stated.
TCS Clarifies Its Layoff Plans
TCS made it clear that the redundancies will not be immediate, but will take place incrementally throughout the year. It also stated that affected employees would be given support packages, including counselling, outplacement services, and suitable benefits.
The news arrives when Indian IT companies are facing macroeconomic issues, geopolitical tensions abroad, and slow client decision-making. These have cumulatively led to subdued top-line growth in Q1FY26 by leading IT companies. TCS and its peers have registered single-digit expansion, indicating prudence among international clients in discretionary technology outlays.
While the company is still investing in upskilling its employees and adopting emerging technologies, cutting headcount is a major departure from its historically stable manpower model. Experts say that TCS’s restructuring may be a precursor for other top IT companies dealing with a similar slowdown.
