TCS layoffs: IT major to cut over 12,000 jobs, middle and senior management to get affected. Here's what we know
The company is retraining and redeploying staff in a bid to become more agile and future ready amid rapid disruptions in technology, particularly around Artificial Intelligence (AI).
The company's decision is primarily targeted at the middle and senior management, reported Reuters.
This decision will impact employees from different countries and domains where TCS operates.
TCS has an employee headcount of 6,13,000 for the latest quarter ended June.
TCS assured that this transition is being planned with 'due care' to ensure no disruption in delivering service to the clients.
In the April-June quarter, TCS's operating margins narrowed 20 basis points to 24.5%, amid the company's plans to boost them to 26-28% levels.
Just two weeks ago, TCS also said that their 'priority' focus is delivering wage hikes for its over 6 lakh workforce.
'My priority is getting back to the wage hike,' said Chief Financial Officer (CFO) Samir Seksaria without specifying a deadline for the salary hike for its employees.
TCS employee attrition rate climbed 13.8% on a last twelve-month (LTM) basis as of the end of the April to June quarter of FY2025-26. This marked a marginal rise on a quarter-on-quarter (QoQ) basis, compared to its 13.3% levels in the January-March quarter of FY 2024-25.
The company's CFO said that with the attrition rate hitting a 'concerning level' as of the April-June quarter, the company will now focus on retaining top-level talent, which is difficult to build through fresh hiring.
He also hinted that as the company has capacity now, it may go slow on lateral hirings and restart once the demand surges, according to the agency report.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
15 minutes ago
- India.com
Bad news for employees of Ratan Tata's TCS, Satya Nadella's Microsoft, Intel as they plan to sack 50,000 employees due to...
Narayan Murthy and Late Ratan Tata- File image IT sector layoff: In a significant bad news for the global tech and IT sector and its millions of employees , three industry giants, Intel, Microsoft, and Tata Consultancy Services (TCS) have collectively announced over 50,000 job cuts in just one week. Readers should note that the massive layoffs wave mark one of the most significant employment disruptions in recent memory. Here are all the details you need to know about the massive layoff wave in the IT sector. Which IT jobs are under risk? Driven by the rapid adoption of artificial intelligence and shifting business priorities amid a broader push toward cost optimization, the major IT companies are taking the decision to reduce their workforce. The world already knows that Microsoft is planning to cut around 9,100 jobs globally, primarily targeting its Xbox, software, and cloud divisions as the company pivots more aggressively toward AI and flattens management structures. Which IT companies are firing on mass scale? Another major company, Intel, which is facing profitability pressures, is slashing over 5,000 roles across multiple US states as part of its strategy to become leaner and more agile. In another update, Ratan TCS, which is India's largest IT firm is trimming about 2% of its workforce, which may possibly impact more than 12,000 employees, especially at the mid- and senior levels, as automation. Why are IT companies doing mass-layoff? Experts say that these large-scale layoffs highlight a deeper structural shift across the tech industry, where AI is not just a tool but a trigger for disruption. As the IT companies are prioritizing more and more innovation and efficiency, traditional roles which were done by humans are rapidly being redefined or replacement.
Hindustan Times
42 minutes ago
- Hindustan Times
America's new plan to defeat China in the AI race Xi Jinping
America's new plan to defeat China in the AI race | Trump | Xi Jinping
Mint
43 minutes ago
- Mint
TCS to lay off over 12,000 employees this year; mid, senior level staff to be impacted
New Delhi, Jul 27 (PTI) India's largest IT services firm, Tata Consultancy Services (TCS), is set to lay off about 2 per cent, or 12,261 employees, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades. As of June 30, 2025, TCS's workforce stood at 6,13,069. It increased its workforce by 5,000 employees in the recently concluded April-June quarter. The move is part of the company's broader strategy to become a "future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement. "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 ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model. "Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," it said. TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, it added The move comes at a time when India's top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat-sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making. For TCS, the revenue rose 1.3 per cent year-on-year to ₹ 63,437 crore, bottomline improved 5.9 per cent to ₹ 12,760 crore in Q1FY26. TCS MD and Chief Executive K Krithivasan recently said the company is experiencing a "demand contraction" due to the continued uncertainties on the macroeconomic and geopolitical fronts, and added that he does not see a double-digit revenue growth in FY26. Krithivasan explained the delays in decision-making experienced in the preceding quarter have "intensified" now, and hoped for the discretionary spends - a prime mover of revenue growths for IT companies - would return once the uncertainties ebb. Microsoft, the second most valuable publicly listed company after Nvidia globally, has so far laid off over 15,000 employees in 2025, that is 7 per cent of the company's global workforce. In a memo to over 200,000 employees last week, Microsoft CEO Satya Nadella said the layoffs this year have been "weighing heavily" on him. "This is the enigma of success in an industry that has no franchise value,' he said in the memo to staff. He added: "Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding. But it's also a new opportunity for us to shape, lead through, and have greater impact than ever before." According to - a platform that tracks global tech industry layoffs - over 80,000 tech workers have been laid off across 169 tech companies in 2025 alone. In 2024, that number stood at a staggering 1.5 lakh across 551 tech companies - the stark numbers coinciding as much with global macroeconomic woes as with deep debate in tech circles about the impact of AI on job roles, workforce, and employability.
