TCS To Lay Off Around 12,000 Employees, Plans 2% Workforce Cut Over The Year

Tata Consultancy Services (TCS) is set to lay off approximately 12,000 employees by FY2026, as the company doubles down on artificial intelligence (AI) and prepares for a future dominated by emerging technologies.

TCS, India's largest software services provider, has announced that it will cut about 2% of its global workforce-equating to roughly 12,200 jobs-from its current employee strength of over 6.13 lakh. The move, slated for implementation between April 2025 and March 2026, comes as the company aims to become leaner, more agile, and future-ready amid rapid technological disruption.

"AI Transforming The Way We Work": CEO K. Krithivasan

Speaking to Moneycontrol in an interview on Sunday, TCS CEO K. Krithivasan said, "We are emphasizing new technologies, particularly AI, and evolving operating models. The way we work is changing. We need to be prepared and agile for the future. We are using AI at scale and evaluating the skills required in this new era." He further added, "We've heavily invested in our associates to help grow their careers. However, there are certain roles where retaining people is no longer effective. This decision will impact about 2% of our global workforce, mainly at the mid and senior levels. It wasn't an easy decision-it's one of the hardest I've had to make as CEO."

Tech-Driven Transformation

TCS is rolling out AI-powered tools and automation across its global operations, reducing the need for human intervention in several routine and backend tasks. The decision is seen as a strategic step to streamline the organization, enhance productivity, and gear up for a digital-first future.

Krithivasan emphasized that the company is handling the process with sensitivity.“To build a stronger TCS, we had to make this tough call,” he said.“We are working to make the transition as compassionate as possible.”

Meanwhile, the company is reportedly considering multiple support measures for affected employees, including notice-period payouts, enhanced insurance coverage, retirement benefits, and outplacement support.

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