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CEO Krithivasan added that the layoffs will be handled gradually and compassionately, with a process in place to identify impacted employees
TCS Job Cuts
TCS Job Cuts: Tata Consultancy Services (TCS), India’s largest IT services exporter, is planning to lay off around 12,000 employees—or roughly 2 per cent of its global workforce—over the course of the current financial year. The move is part of the company’s broader effort to realign its workforce strategy and position itself as a “future-ready” organisation, amid evolving technology and operational requirements.
Also Read: TCS Not Cutting Jobs Due To AI, Says TCS CEO Krithivasan On 2% Workforce Layoff Plans
This development comes shortly after TCS revised its internal human resource policies, mandating employees to maintain at least 225 billable days annually and limiting bench time to 35 days.
In a statement, TCS 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,” the company added.
TCS emphasised that the reduction in headcount is not related to efficiency gains from artificial intelligence. In an exclusive interview with Moneycontrol, TCS CEO and MD K Krithivasan said, “No, this is not because of AI giving some 20 per cent productivity gains. We are not doing that. This is driven by where there is a skill mismatch, or where we think that we have not been able to deploy someone.”
Krithivasan added that the layoffs will be handled gradually and compassionately, with a clear process in place to identify impacted employees and explore internal redeployment options first. “It will be coming through the year. We won’t do it in a hurry. We will first talk to the people that could be impacted. We will provide them an opportunity. When we are not able to provide the opportunity, then we will do what we need to do,” he said.
The company also outlined the support mechanisms it plans to offer to affected employees. According to Krithivasan, TCS will follow its established HR policies, which include notice-period pay, additional severance benefits, insurance extensions, outplacement support, and counselling services. “We will do it in a very, very compassionate way,” he told Moneycontrol.
While the exact timeline has not been disclosed, the company confirmed that the layoffs will be phased over the rest of FY26.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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