Tata Consultancy Services (TCS), India’s largest IT services firm, is set to reduce its workforce by approximately 2%—equivalent to around 12,000 employees—over the course of the year. The decision comes as the company navigates ongoing global economic challenges and adjusts to rapid changes driven by artificial intelligence in the tech industry.
“As of June-end, the Mumbai-headquartered company employed 613,069 people.” The planned layoffs reflect broader trends in the IT sector, where evolving client demands and AI-led transformations are reshaping business models and reducing the need for certain roles. TCS is not alone in making such adjustments, as many global tech firms have taken similar steps in response to slowing growth and increased automation.
Impacted employees will be offered comprehensive support during their transition. “The affected staff will receive payments for their notice periods along with additional severance packages.” TCS also stated it would provide further assistance to those laid off through continued healthcare coverage and career support services. “TCS has also announced that it will extend insurance benefits and provide outplacement support to help impacted employees transition to new opportunities.”
While the layoffs signal a significant workforce shift, TCS maintains that the move is part of a strategic alignment to better position itself for long-term growth and resilience in a changing digital landscape. The rise of generative AI tools and automation technologies has prompted IT firms to rethink resource allocation and workforce planning, focusing on efficiency and high-demand skills.
TCS has historically maintained one of the largest workforces in the global IT sector. However, with clients increasingly seeking AI-powered solutions and automation playing a growing role in software development and service delivery, the company is realigning its talent base accordingly.
Though the job cuts mark a difficult period for thousands of employees, TCS’s support measures suggest an effort to manage the transition responsibly. As the company continues to invest in emerging technologies and new service lines, the focus now shifts to reskilling, automation, and adapting to future workforce needs.
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