TCS layoffs: India’s largest IT company, Tata Consultancy Services (TCS), is set to cut its workforce by 2% this year, affecting as many as 12,261 employees of its global workforce.
The development comes just two weeks after TCS said that the company’s ‘priority’ focus is delivering wage hikes for its over 6 lakh workforce.
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.
Why is TCS laying off 12,000 employees?
The move is part of the company’s broader strategy to become a “future-ready organisation” by focusing on investments in technology, particularly in AI deployment and market expansion.
TCS has also decided to realign its workforce, the company said in a statement.
“TCS is on a journey to become a Future-Ready organisation. This includes strategic initiatives on multiple fronts.”
The company added that this growth strategy includes “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,” reported PTI.
Which roles within TCS will get impacted?
Speaking of reskilling and redeployment initiatives, the company said, “As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible.”
The employees belonging to the middle and senior grades will be impacted by this decision and they will be releasedover the course of the year.
What will impacted employees get?
TCS said that impacted employees will receive appropriate benefits, outplacement, counselling, and support to deal with the situation.
Shifting policies
The move comes weeks after TCS changed its employee bench policy, requiring staff to maintain at least 225 billable days annually and limiting time on the bench to less than 35 days.
In this policy, the employees have to work for a minimum of 225 business days in the last one-year period with a reduced bench period.
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