TCS to lay off over 12,000 employees in major workforce cut

TCS said it’s retraining staff amid AI, tech shifts and market expansion, but around 12,200 roles will be cut as part of the restructuring process.

Tata Consultancy Services (TCS), India’s largest IT services provider, will reduce its workforce by two per cent – over 12,000 jobs – in the 2026 financial year, primarily affecting middle and senior management, Reuters reported, citing the company on Sunday.

TCS chief executive K Krithivasan also said this month that there were delays in client decision-making and project starts. (REUTERS/ Representative)

The company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but about 12,200 jobs will be cut as part of the process, it said.

The company added, “This transition is being planned with due care to ensure there is no impact on service delivery to our clients. ”

TCS CEO K Krithivasan, in an interview with Moneycontrol on Sunday, acknowledged that shifts in technology and business operations were driving internal changes.

“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. We have been deploying AI at scale and evaluating skills we will be requiring for the future,” he was quoted as saying.

He added that despite significant investments in employee development and career opportunities, “we find that there are roles where redeployment has not been effective. This will impact roughly 2 percent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest decisions I have had to take as CEO.”

When asked whether the move was driven by AI-led productivity improvements or broader macroeconomic and demand-related factors, Krithivasan clarified, “This is not because of AI but to address skills for the future. This is about feasibility in deployment not because we need less people.”

Krithivasan earlier this month stated that there were delays in client decision-making and in the initiation of new projects.

Reactions

Reacting to the TCS job cuts, an X user commented, “TCS is laying off 12000 Employees over the course of the year. If TCS is laying off then what will be the situation in Other IT Firms? Looks Horrible.”

Another user pointed to the growing concerns around artificial intelligence, writing, “The AI threat is not coming anymore. Its already here. In a massive corporate story on a Sunday afternoon, TCS decides to layoff more than 12,000 people that will have huge ramifications in the Indian IT Sector. The layoffs would be, ‘primarily at Middle and Senior Levels ….those without redeployment prospects or matching future skill needs. Huge.’”

On Reddit, users also voiced their frustration. One wrote, “Layoffs in any company are not good news. TCS laying off employees means it is evident that job loss due to AI automation is real. Now, competition will increase and pay will decrease. Don’t approach the news with the mindset that mid- and senior-level employees at are lazy and totally useless. It’s more about employers/companies versus workforce. You have to take either one of the side.”

Another Redditor criticised internal practices, saying, “The thing is most of the employees wants to learn new technologies and work for tcs but they don't care what employees want , what their expertise are and their aspirations. Literally i have seen employees such a good coders and have deep knowledge of technologies but are working in support , service desk etc. They have been wasting talents actually the laid back approach is not of engineers but management, RMG, HR etc.”