India’s largest IT services firm, Tata Consultancy Services (TCS), has announced plans to lay off about 2% of its global workforce—translating to over 12,000 employees—over the course of the year, citing macroeconomic uncertainties and rapid disruption from AI technologies.
As of June-end 2025, TCS employed 6.13 lakh people worldwide. The job cuts will primarily impact mid- and senior-level professionals, the company said in a statement .
“TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the company said.
The move comes amid falling hiring trends in the Indian IT sector. According to ET, the top six Indian IT companies added just 3,847 employees in the April-June quarter—down more than 72% from the 13,935 additions in the previous quarter.
Reskilling and Support for Impacted Employees
TCS has assured that the transition will be managed carefully to avoid disruptions in client services. Affected employees will be provided with full notice period payments, additional severance packages, extended insurance benefits, and outplacement assistance.
“We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and will be making all efforts to support them as they transition to new opportunities,” the company said.
The announcement follows recent internal backlash over TCS’s updated employee bench policy, which now mandates a minimum of 225 billable days annually and limits project-less periods to just 35 days a year. Several employees have reportedly filed legal complaints regarding the policy, arguing that it puts undue pressure on staff awaiting deployment.
Pivot to AI and New Technologies
As TCS adapts to evolving business dynamics, the company is investing in emerging technologies, expanding into new markets, and deploying AI solutions at scale—for clients and internally. The firm is also undertaking significant reskilling and workforce realignment efforts as part of its strategy to remain competitive in the AI age.
TCS noted that these measures are part of a broader transformation aimed at strengthening its long-term growth prospects. “We are making strategic initiatives across multiple fronts… including next-gen infrastructure and realigning our workforce model,” it added.
The developments at TCS reflect a broader trend in India’s $283 billion software services industry, where firms are cautiously navigating global headwinds while gearing up for an AI-driven future.
