TCS preparing for large scale layoffs, more than 12000 employees will lose their jobs

Tata Consultancy Services (TCS) will reduce by 2 percent in FY 2026. It is estimated that over 12,000 people will lose their jobs. The layoff will primarily target middle and senior management.

Business needs are being impacted because of pervasive uncertainties and artificial intelligence technology-driven disruptions. As of June end, the company had 6.13 lakh people in its employment rolls. A top company executive stated, TCS will also lay off those colleagues whose deployment is not feasible. This will impact around two percent of our worldwide workforce.

The company said that it is retraining and redeploying employees to enter new markets, invest in new technology and implement AI, but about 12,200 jobs will be cut in this process. This change is being done with utmost caution. So that there is no impact on the service provided to the customers.

TCS CEO K Krithivasan said during an interview that we are emphasizing on new technology, especially AI and changes in the operating model. Ways of working are changing. We need to be prepared for the future. We are using AI on a large scale and evaluating the skills required for the future.

He said that despite significant investment in employee development and career opportunities, we found that some positions do not require reappointment. This will affect about two percent of our global workforce. This is not an easy decision. This is one of the toughest decisions I have taken as CEO. He said that we are doing this not because of AI but with the aim of developing future skills. This has been done due to the need for posts, not because we need fewer people.

There is a lot of discussion among people about the layoffs in TCS. One user on X wrote that TCS is laying off 12,000 employees in a year. If TCS is laying off, what will happen to the rest of the IT companies? Another said that the threat of AI is not coming. It has already come. The layoffs by CS mean that the loss of jobs due to AI automation is clear. Now competition will increase and salaries will be less.

The June quarter report indicates that just two companies, Tata Consultancy Services (TCS) and Infosys, reported a rise of 5,060 and 210 respectively in the employee count during the June quarter. The remaining four, HCL Tech, Wipro, Tech Mahindra and LTI Mindtree, laid off 1,423 people. In this way, only 3,847 people got net jobs.