Tata Consultancy Services (TCS) is planning to retrench around 2 per cent of its employees globally this year. That could translate into job losses for as many as 12,261 staff of India’s largest IT company.
Following the firm hiring 5,000 employees in the quarter ended June, the TCS employee base was 6,13,069 employees as of June 30, 2025.
TCS in a release stated that the move was made so that the IT company can become a “future-ready organisation”, where it would prioritize market growth, AI implementation and realignment of workforce.
Middle and Senior Management Roles to Be Affected
The job cuts will primarily be targeted towards the middle and senior management roles of the company, according reports, which cited the statement. The company said that the transition was being planned to prevent any impact in delivery of services to the clients.
TCS in its statement announced that a number of reskilling and redeployment programs were in progress, and that the company would be releasing “associates from the organisation whose deployment may not be feasible”.
TCS Statement on Strategic Workforce Realignment
“TCS is on a journey to become a Future-Ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model,” PTI news agency cited the statement.
“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” it said.
CEO K Krithivasan’s Comments on the Transition
TCS CEO K Krithivasan said in an interview with Moneycontrol on Sunday, “We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile.”
The layoff would mostly be aimed at the mid and top-level management of the firm, as per reports, which quoted the statement. The company added that the shift was being lined up so that there would not be any effect on delivery of services to the customers.
Skills and Feasibility, Not Headcount Reduction
In the announcement, TCS stated that there were a number of reskilling and redeployment programs in progress, and that the company would be releasing “associates from the organisation whose deployment may not be possible”.
Krithivasan said that the move was not taken considering AI, but to address skills for the future. “This is about feasibility in deployment not because we need less people,” he added.
