TCS layoffs: IT major to cut over 12,000 jobs, middle and senior management to get affected. Here's what we know
The company is retraining and redeploying staff in a bid to become more agile and future ready amid rapid disruptions in technology, particularly around Artificial Intelligence (AI).
The company's decision is primarily targeted at the middle and senior management, reported Reuters.
This decision will impact employees from different countries and domains where TCS operates.
TCS has an employee headcount of 6,13,000 for the latest quarter ended June.
TCS assured that this transition is being planned with 'due care' to ensure no disruption in delivering service to the clients.
In the April-June quarter, TCS's operating margins narrowed 20 basis points to 24.5%, amid the company's plans to boost them to 26-28% levels.
Just two weeks ago, TCS also said that their 'priority' focus is delivering wage hikes for its over 6 lakh workforce.
'My priority is getting back to the wage hike,' said Chief Financial Officer (CFO) Samir Seksaria without specifying a deadline for the salary hike for its employees.
TCS employee attrition rate climbed 13.8% on a last twelve-month (LTM) basis as of the end of the April to June quarter of FY2025-26. This marked a marginal rise on a quarter-on-quarter (QoQ) basis, compared to its 13.3% levels in the January-March quarter of FY 2024-25.
The company's CFO said that with the attrition rate hitting a 'concerning level' as of the April-June quarter, the company will now focus on retaining top-level talent, which is difficult to build through fresh hiring.
He also hinted that as the company has capacity now, it may go slow on lateral hirings and restart once the demand surges, according to the agency report.
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