TCS to Lay Off 12,000+ Employees Amid Major Workforce Restructuring

The Indian giant in the IT sector, Tata Consultancy Services (TCS), has decided to reduce 2 percent of its workforce; it is expected that in the coming year around 12,000 employees at mid and senior level will be affected by this decision as stated by the CEO of TCS, K. Krithivasan, in an interview with Moneycontrol.

The action is intended to ensure that the IT giant can be more adaptive and future-proof amid changes in technology, both sudden and far-reaching.

TCS will do lay offs to the employees globally where the company is represented during the fiscal year 2026 (April 2025 to March 2026).

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On the question of why this move is being made, TCS CEO K Krithivasan informed Moneycontrol that modes of operation are evolving and a need to be future ready and nimble. He added that they have been crying of new technologies such as AI and changes in the way the operation is being done. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities," he added.

Krithivasan stated that they are already implementing AI on massive scales and testing skills that they will be needing in future. “This will impact roughly 2 per cent of our global workforce, primarily at middle and senior levels," he added in the interview with Moneycontrol.

Krithivasan posited that they came to the conclusions that there are positions in which redeployment has not performed adequately.

Indian multinational company, which is the biggest name in the IT services market, has hired 6,071 people in the April-June quartile of 2025. On this, there were 6,13,069 employees at TCS by the end of June 2025. Following a regulatory filing, TCS added as much as 5,090 employees on a net basis in Q1 of the current fiscal. Attrition rate in its IT services (on last twelve month basis) increased slightly to 13.8 per cent in Q1 FY26 against 13.3 per cent recorded in the previous quarter. The outflow had been at 13 per cent in the quarter of December 2024.

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Tata Consultancy Services (TCS) is likely to unveil less of salary increments this year around 4 per cent and 8 per cent according to reports. This will be the lowest hike witnessed in four years. TCS had introduced a salary growth of 10.5 per cent in FY22, 6-9 per cent in FY23 and 7-9 per cent in FY24.

On July 10, the biggest IT services firm of the company reported a year-on-year (YoY) gain of 5.98 per cent in their net profit to Rs 12,760 crore on first quarter ended June 30, 2025 (Q1 FY26). Even on a quarter-on-quarter (QoQ) basis, the net profit rose 4.38%.

It had registered a net profit of Rs 12,040 crore a year before and during the last quarter of 12,224 crore respectively.

The company however earned Rs 63,437 crore in revenue through o perations in April-June 2025 which has increased by 1.13 per cent as compared with the last year that reported Rs 62,613 crore. Retrospectively, the revenue declined by 1.61% in sequential basis.

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