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IT ministry ‘concerned', 'keeping close watch’ on TCS layoff situation: Report
IT ministry is concerned about the TCS situation and will make efforts to find out why it is happening and its underlying cause.
Information technology (IT) ministry is keeping a close watch on the development after Tata Consultancy Services (TCS) on Sunday announced a decision to lay off over 12,000 employees, PTI news agency reported, citing sources.
The IT ministry is keeping a close watch on the entire situation and is also in touch with TCS, the above-mentioned sources said.
A key priority still remains the growth of employment, with a focus on how initiatives like Employment Linked Incentives can help boost job creation, they asserted. The emphasis still remains on skilling and reskilling.
Further, the ministry is concerned about the current situation and will make efforts to find out why it is happening and its underlying cause, the report mentioned.
Also read: Artificial intelligence behind 12,000 TCS job cuts? CEO K Krithivasan breaks silence
India’s largest IT services firm, TCS, is set to lay off 12,261 employees or two per cent of its global workforce, this year. This will majorly impact the employees at middle and senior grades. As of June 30, 2025, TCS’s workforce stood at 6,13,069, according to reports. Recently, in April- June, its workforce increased by 5,000 employees.
This move is part of the company’s broader efforts to become “future ready” with more focus on investment in technology, AI deployment and market expansion, TCS said in a statement on Sunday. The company also said that the transition is being planned with care, ensuring that the services to the clients do not get impacted.
"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 deepening our partnerships,” TCS said in the statement.
The statement also highlighted that several reskilling and redeployment initiatives are already in progress. As part of this process, the organisation will also be letting go of some employees whose redeployment is not viable. This change will affect approximately 2 per cent of the global workforce, mainly at the middle and senior levels, over the course of the year.
Appropriate benefits, including outplacement, counselling and support, will be provided by the company to the impacted employees, it said.
