TCS layoffs: Govt to discuss issue with industry, academia

TCS sent an internal email on a Sunday evening, informing employees of cutting 2% of its global workforce in the current fiscal year.

By  Storyboard18| Jul 28, 2025 4:44 PM
TCS’s total headcount stood at 6.13 lakh as of June 30, 2025

The central government has reportedly taken cognisance of TCS's recent decision to lay off 2% of its workforce and is likely to discuss the issue with industry and academia in the coming days.

According to a report by Moneycontrol, the Ministry of Electronics and Information Technology (MeitY) is watching all the developments surrounding the Tata Consultancy Services (TCS) and said , it expects the industry and academia to address issues related to skilling and re-skilling.

"Industry and academia will also have to address skilling and re-skilling related issues. We are keeping a close eye onall of this," Moneycontrol reported, citing a MeitY spokesperson.

The spokesperson added that the centre is in touch with industry on the trends, particularly in employment.

TCS sent an internal email on a Sunday evening, informing employees of cutting 2% of its global workforce in the current fiscal year. However, Chief Executive Officer (CEO) K Kirthivasan said the layoffs has no connection with Artificial Intelligence. The decision is driven by skill mismatch, he added.

According to the email, "TCS is on a journey to become a future-ready organization. This includes strategic initiatives on multiple fronts, including investing in new tech areas (AI and Data, Cybersecurity, Cloud, IoT, and Enterprise Solutions), entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen delivery and innovation infrastructure and realigning our workforce mode.

"This will impact 2% of our global workforce, primarily in the middle and senior grades, over the course of the year," the mail read.

TCS’s total headcount stood at 613,069, with an attrition rate of 13.8% Last Twelve Months (LTM) as of June 30, 2025.

First Published onJul 28, 2025 4:44 PM

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