TCS Layoffs: India’s largest IT services company TCS (Tata Consultancy Services) is set to lay off 12,000 employees globally, or approximately 2 per cent of its workforce, the company has said.
In total, 12,261 employees, mostly belonging to mid and senior grades, will be affected due to the latest TCS layoffs. As of June 30, 2025, TCS’s workforce stood at 6,13,069. It increased its workforce by 5,000 employees in the recently concluded April-June quarter.
Why is TCS laying off employees?
In its statement on Sunday, TCS said that the IT company layoffs is part of the company’s broader strategy to become a “future-ready organisation”, focusing on investments in technology, AI deployment, market expansion, and workforce realignment.
“Towards this, a number of reskilling and redeployment initiatives have been underway. 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 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” it said.
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TCS Layoffs: Top 5 updates
1. Amid the news of 12,000 employee layoffs at TCS, CEO K Krithivasan said that the firings are not due to AI but a skill mismatch. “This is not because of AI giving some 20 per cent productivity gains. This is driven by where there is a skill mismatch or where we think we have not been able to deploy someone,” he said. Acknowledging the unprecedented nature of the layoff, he assured that it will be handled “in a very, very compassionate way.”
2. Hundreds of TCS employees have already been asked to leave, according to a report by Mint. The layoffs actually began in the first half of July with employees in the 24-55 age group from Bengaluru, London and Princeton shown the door. “People in the bench with WFO (work from office) index issues are also getting released by the system, and have been asked to go,” a source told Mint.
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3. According to another source cited by Mint, Business Heads of TCS have been asked to send in a list of employees whom the company can consider for the pink slips. While a third of employees to be laid off in the coming months are from the benched section, the remaining will be let go of based on this list.
4. The IT Ministry is keeping a close watch on situation arising out of the TCS layoffs, and is keeping in touch with the Tata Group, PTI reported quoting sources. The ministry is concerned and will go into the underlying causes that has prompted the move.
5. Shares of TCS continued their downward movement on Tuesday, after having tanked 2 per cent at Monday’s close.
(This is a developing story. Check back for updates)