TCS layoffs 2025: Why India's biggest IT co is asking 12,000 techies to leave, who's at risk, and what severance package they will get

Time of India

2 days ago

Tata Consultancy Services (TCS), the country's largest IT services firm, is laying off about 2% of its workforce, over 12,000 employees, during the course of 2025. The decision comes as the company adjusts to global business uncertainties and rapid changes brought by artificial intelligence (AI).
Why is TCS reducing jobs?
TCS said the layoffs are part of its larger plan to become more future-ready and improve how it delivers technology services. It cited lower business demand and the impact of AI-led changes as key reasons behind the decision.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Others
Public Policy
Data Science
healthcare
Operations Management
MCA
Digital Marketing
Product Management
PGDM
Cybersecurity
Data Science
Finance
Data Analytics
Management
Design Thinking
Project Management
Healthcare
CXO
Leadership
others
Degree
MBA
Technology
Skills you'll gain:
Duration:
28 Weeks
MICA
CERT-MICA SBMPR Async India
Starts on
undefined
Get Details
Skills you'll gain:
Duration:
9 months
IIM Lucknow
SEPO - IIML CHRO India
Starts on
undefined
Get Details
Skills you'll gain:
Duration:
16 Weeks
Indian School of Business
CERT-ISB Transforming HR with Analytics & AI India
Starts on
undefined
Get Details
Skills you'll gain:
Duration:
7 Months
S P Jain Institute of Management and Research
CERT-SPJIMR Exec Cert Prog in AI for Biz India
Starts on
undefined
Get Details
The company stated, '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.'
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Aussies Ditching Expensive Health Cover for This Smarter Choice
Senior Savings
Learn More
Undo
The job cuts follow a broader trend in India's IT sector, which has seen a major slowdown in hiring. Between April and June 2025, the top six IT companies added only 3,847 employees—down over 72% from the previous quarter, according to an ET report.
TCS Layoff: Senior or junior, who will be affected?
The layoffs will mainly affect mid-level and senior employees. TCS clarified that the workforce reduction would happen gradually over the year and would not impact client service delivery.
Live Events
You Might Also Like:
TCS layoffs: IT major to mass fire 12,000 senior, mid-level staffers amid AI push
The company had 613,069 employees on its rolls at the end of June.
What will laid-off employees receive?
TCS said it is providing multiple support measures to the employees who are being let go. These include full notice period payments, an additional severance package, extended insurance benefits, and outplacement assistance.
'This transition is being planned with due care to ensure there is no impact on service delivery to our clients… We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,' the company said.
What else is changing at TCS?
The company is also working on strategic shifts. These include deploying AI at scale, investing in new technologies, exploring new global markets, and updating its internal workforce model.
You Might Also Like:
Explained: Why TCS firing 12,000 employees may be a canary in the mine and what it means for investors
TCS has also been running internal reskilling and redeployment programmes to adapt to these changes. The company recently introduced a new bench policy requiring employees to maintain 225 billable days annually, with only 35 days allowed without deployment—a move that has led to employee concerns and legal complaints.
India's IT sector under pressure
India's software services industry, which employs millions and generates over $283 billion in revenue, is facing a shift as automation and AI tools start to replace traditional tech work. TCS's move marks one of the biggest workforce adjustments by any single company this year.
TCS's new bench policy sets 35-day limit for project deployment
Tata Consultancy Services (TCS) has introduced a revised deployment policy effective from June 12, 2025, which requires employees to be assigned billable work for a minimum of 225 business days each year. This effectively limits the time employees can remain on the bench—without a project—to 35 business days annually.
Policy outlines consequences for extended bench time
As per internal communication, employees who remain unallocated for long durations may face negative impacts on their salary, future promotions, chances of international assignments, and even continued employment.
The document states, 'Long periods of remaining unallocated shall adversely impact associate compensation, career growth, avenues of overseas deployment in future, and continuity of employment with the organisation.'
Employees must take initiative during bench period
TCS expects employees to actively look for project assignments during their bench time. Associates are directed to coordinate with the Resource Management Group (RMG) and explore opportunities available within the company.
'In the event an associate is unallocated, it is the primary responsibility of the associate to proactively engage with the Unit/Regional RMG for seeking allocation and take initiative towards pursuing suitable opportunities provided by the organisation,' the company stated.
Mandatory training and office presence during bench
During the bench period, employees are required to spend four to six hours daily on upskilling through platforms such as iEvolve, Fresco Play, VLS, or LinkedIn Learning. TCS has also made in-office presence the default, limiting remote work for those not assigned to a project.
Summary of TCS's deployment rules
Element
Requirement
Minimum billable work
225 business days per year
Allowed bench period
35 business days per year
Penalties
Risk to salary, promotions, overseas postings, continued employment
Employee role
Must seek assignments via RMG
During bench
Daily upskilling (4–6 hrs), in-office attendance
How many employees could be affected?
While TCS has not disclosed specific numbers, industry estimates suggest that 15–18% of employees at large IT firms in India are typically on the bench at any given time. With a total workforce of over 613,000, the potential number of impacted employees at TCS could be substantial.
Labour group terms policy 'exploitative'
Last week, the Nascent Information Technology Employees Senate (NITES) sent a formal request to Union Labour Minister Mansukh Mandaviya seeking intervention against the new policy.
'These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation… Instead of support, they are met with suspicion, coercion, and threats,' said NITES president Harpreet Singh Saluja in the letter.
The organisation accused TCS of pressuring benched employees with the threat of job loss and withholding experience certificates if they fail to secure a project within the defined time limits.