- By Chetna Shree
- Sun, 27 Jul 2025 06:37 PM (IST)
- Source:JND
TCS Layoffs 2025: In a major shift towards technology-driven operations, India’s largest IT Service Provider, Tata Consultancy Services (TCS), will reduce its workforce by 2 per cent in the 2026 financial year, affecting over 12,000 employees, primarily in senior and middle management. TCS CEO K Krithivasan said that the transition is being planned to be future-ready and agile, as the way of working has changed and AI is being deployed at scale.
“The company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but about 12,000 jobs will be cut as part of the process. This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” Reuters reported, citing the company.
Krithivasan, in an interview with Moneycontrol, acknowledged that shifts in technology and business operations were driving internal changes. “We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile. We have been deploying AI at scale and evaluating skills we will be requiring for the future,” he said.
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TCS CEO further said that despite significant investments in employee deployment, there are roles where redeployment has been effective. Talking about the layoffs, he said, “This will impact roughly 2 per cent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest decisions I have had to take as CEO.”
In another incident, TCS has allegedly deferred the onboarding of more than 600 experienced candidates without any prior information, The Economic Times reported. This development from India’s largest IT Service Provider has sparked widespread alarm within the IT industry, with many viewing it as a major employment setback in recent years. Several professionals who accepted a job offer from TCS and resigned from their previous companies are facing financial difficulties. However, TCS continues to assert its commitment to affected hires.
A spokesperson told Economic Times, “We can confirm that, as always, TCS is committed to honouring all offers we have made, whether it is to freshers or experienced professionals. Everyone who has received an offer from TCS will be onboarded. The joining dates are decided as per business demand, and in some cases, they do get adjusted to meet our business needs. We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon.”