TCS layoffs: IT major to cut 2% workforce over next year, impacting 12,000 employees
According to CEO K Krithivasan, Tata Consultancy Services (TCS) will reduce its workforce by 2%, impacting over 12,000 employees to become more agile and future-ready.
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Tata Consultancy Services (TCS) has announced trimming 2% of its workforce, affecting roughly over 12,000 employees at middle and senior levels over the next year.
In an interview with Moneycontrol, CEO K Krithivasan said the move aims to make the IT giant more agile and future-ready amid rapid disruptions in technology.
TCS plans to reduce its workforce across all global locations where it operates during the fiscal year 2026 (April 2025 to March 2026).
When asked the rationale behind the move, Krithivasan told Moneycontrol that ways of working are changing and there’s a requirement to be future-ready and agile.
He added that they have been calling out new technologies like AI and operating model changes.
The executive said that they have been deploying AI at scale and evaluating skills they will be requiring for the future. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities," he added.
Krithivasan argued that they found that there were roles where redeployment hasn’t been effective.
“This will impact roughly 2% of our global workforce, primarily at middle and senior levels," he added in the interview with Moneycontrol.
The IT major recently made headlines after facing criticism from tech professionals and an employee group over delays in onboarding around 600 lateral hires. This comes in the wake of employee backlash against TCS’s revised bench policy, which permits only 35 days per year without project allocation.
On July 22, the Nascent Information Technology Employees Senate (NITES), an employee welfare organization, raised the issue with Union Labour Minister Mansukh Mandaviya. NITES highlighted that those holding job offers from TCS are in a tough situation, having quit previous roles and made financial commitments based on assured joining dates.
India’s largest IT services firm onboarded 6,071 employees during the April–June 2025 quarter, bringing its total workforce to 6,13,069 as of June 30, 2025. On a net basis, TCS added 5,090 employees in the first quarter of the fiscal year, as per its regulatory filing. The company’s IT services attrition rate (on a last twelve-month basis) rose slightly to 13.8% in Q1 FY26, up from 13.3% in the previous quarter and 13% in Q3 FY25.
TCS reportedly is also expected to roll out lower salary hikes this year between 4%- 8%, claimed to be the lowest in the past four years. TCS had rolled out a salary increment of 10.5% in FY22, 6-9% in FY23, and 7-9% in FY24.
