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TCS clarifies stance on layoffs, CHRO says ‘no targeted job cuts, continuous evaluation underway’
TCS HR head Sudeep Kunnumal clarified that the company is not pursuing any fixed layoff target despite a 20,000 headcount drop in Q2. He said the reduction stems from both voluntary and involuntary attrition, and employees will continue to be evaluated based on redeployment potential.
TCS attrition fell to 13.3% Q2 FY26.
Tata Consultancy Services (TCS) has clarified that it is not working towards any specific target for job cuts, despite a recent decline in headcount. Speaking during the company’s Q2 FY25 earnings call, Chief Human Resources Officer (CHRO) Sudeep Kunnumal addressed concerns over layoffs, emphasizing that the IT major is “not chasing a number” but rather evaluating employees continuously based on redeployment and performance.
During the call, Citi analyst Surendra Goyal questioned the decline of nearly 20,000 employees (around 3%) in the latest quarter, higher than the 2% workforce rationalization TCS had previously indicated. Responding to this, Kunnumal said the reduction was a mix of voluntary and involuntary attrition, adding that the process is still ongoing.
“We are midway through what we had guided earlier. We have done around 1% so far. We will continue to evaluate everyone, especially after the investments made in learning and development. There’s no target-based approach here,” Kunnumal said.
Clarifying further, he noted that TCS expects the total release to be around 2%, but stressed that each case will depend on whether employees can be redeployed to relevant projects.
Meanwhile, Kunnumal also touched upon the recent H-1B visa policy changes in the United States, which impose a $100,000 annual fee per application. He said TCS’s “localized workforce model” in the U.S., with only about 500 employees currently on H-1B visas, positions it well to adapt to any immigration policy changes.
Additionally, TCS announced a wage hike for over 80% of its employees, effective September 1, underscoring its commitment to retain and reward top talent despite headcount adjustments.
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