Tata Consultancy Services (TCS), India’s largest IT services firm with a workforce of about 613,000 as of June 2025, has disclosed plans to reduce its global headcount by approximately 2%, which translates to just over 12,000 jobs, during its Financial Year 2026 (starting April 2025).
What’s driving the decision?
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Macro‑economic slowdown: Global demand for IT services is softening, especially for discretionary technology spending amid inflation and trade uncertainty
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AI‑driven business transformation: TCS is accelerating the adoption of AI and automation, reshaping traditional labor‑intensive service models and reducing the need for certain roles
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Strategic workforce realignment: The company is retraining and redeploying employees into emerging technology areas and new markets, though some roles—especially mid‑ and senior‑level deployments deemed non‑feasible—are being eliminated
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Who is affected?
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About 12,200 roles within the middle to senior management levels globally are expected to be impacted, while junior-level positions are largely spared
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TCS has committed to providing severance packages, outplacement support, insurance extensions, and career counseling to affected employees
Timeline & Context
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The layoffs are scheduled to unfold across FY 2026 (April 2025–March 2026), with announcements made on July 27, 2025
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This move comes amid broader industry challenges—top Indian IT players also reported slowdowns in hiring during Q1 and Q2 of FY 26, largely attributed to weakening client momentum and delayed project starts
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Industry Implications
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The restructuring is part of a sector-wide shift: AI is fundamentally changing delivery models, and margin pressures are forcing companies like TCS to streamline workforce structures
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Layoffs at a traditionally stable company like TCS signal a deeper, structural change underway across India’s $283 billion IT services industry
