Tata Consultancy Services (TCS), India's largest IT company, is preparing to cut around 2% of its global workforce this year. This decision could affect nearly 12,261 employees, mainly those in middle and senior-level positions.
Workforce Count Grew Before Layoff Plan
Earlier this year, TCS added 5,000 new employees between April and June. This brought the total headcount to 6,13,069 as of June 30, 2025. However, despite this growth, the company has now decided to reduce staff.
Company Aims to Become Future-Ready
In a statement, TCS explained that this step is part of its journey to become a “future-ready organisation.” The company said it wants to expand into new markets, deploy artificial intelligence (AI) on a large scale, and realign its workforce.
TCS noted, “This includes strategic initiatives on multiple fronts, including 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.”
Who Will Be Affected?
The company said the job cuts will focus on middle and senior management. Reports mentioned that the firm will carefully manage the transition to ensure that client services are not affected.
At the same time, reskilling and redeployment efforts are underway. TCS mentioned that it would release employees “whose deployment may not be feasible.”
The statement added, “As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 percent of our global workforce, primarily in the middle and the senior grades, over the course of the year.”
CEO Speaks on the Difficult Decision
TCS CEO K Krithivasan spoke to Moneycontrol on Sunday. He said the industry is going through major shifts due to AI and changes in the operating model. “We need to be future-ready and agile,” he said.
He explained that the company has invested in upskilling its workforce. Still, in some cases, redeployment did not work.
Krithivasan admitted, “This was one of the toughest decisions I have made as the CEO of TCS.”
AI Not the Main Reason, Says CEO
Although many link job cuts to AI, Krithivasan said this was not about reducing people because of AI. Instead, the decision focused on deployment feasibility. “This is about feasibility in deployment not because we need less people,” he added.