TCS layoffs: Bad news for TCS employees, Ratan Tata's company to sack over 12,000 employees due to..., impacted staff to...

India.com

5 hours ago

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. In a statement, TCS stated that 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. Who Will Be Most Affected by the TCS Job Cuts?
Most of those impacted are expected to be at the middle and senior levels. 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, reported news agency PTI. This is not the first time TCS has come under scrutiny. From its newly enforced bench policy that has sparked panic among employees, to the indefinite delay in onboarding over 600 lateral hires, late Ratan Tata's TCS is facing criticism on several fronts.
The company, in its statement, said, '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 stated. What Kind of Support Will Impacted Staff Receive from TCS?
Additionally, the IT giant will provide appropriate benefits, outplacement, counselling, and support to the impacted employees. Tata Consultancy Services (TCS), according to a report from the Economic Times (ET), will pay notice period compensation and severance benefits to employees impacted by its restructuring. The company will also be providing extended insurance coverage and career transitions support for those impacted by the changes.
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 Rs 63,437 crore, bottomline improved 5.9 per cent to Rs 12,760 crore in Q1FY26.
Earlier, TCS MD and Chief Executive K Krithivasan stated 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, reported news agency PTI.
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.
TCS is not the only company that is laying off its employees. 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.
As per Layoffs.fyi – 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.