TCS is slashing 12,000 jobs in India's biggest IT layoff; will others follow?
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On Sunday, Tata Consultancy Services (TCS), India's biggest IT services company, announced the largest-ever layoffs in the country's IT sector. The company plans to cut around 2% of its global workforce, or approximately 12,000 employees.Most of those affected will be in middle to senior roles.The move comes amid growing macroeconomic uncertainty and increasing AI-led disruptions impacting technology demand.It remains to be seen if other companies follow the leader. So far this fiscal year, no other Indian IT company has announced layoffs on this scale. While Infosys did let go of some trainees who failed to clear assessment tests, their number was in the hundreds.India's top IT companies saw a significant drop in net workforce additions in the first quarter of FY26 (Q1 FY26), indicating a cautious approach to hiring across the sector. While a few companies showed marginal improvement, the overall trend points toward reduced recruitment momentum.TCS said that it will provide appropriate benefits, outplacement, counselling, and other support to affected employees.The employees will receive payments for their notice periods, along with a severance package. In addition, TCS will also look to extend insurance benefits and offer outplacement opportunities for those impacted.As of the end of June, TCS employed 613,069 people globally.The decision to reduce headcount comes as the company faces pushback over the delayed onboarding of around 600 experienced lateral hires. Many of these professionals had already resigned from previous jobs and made personal and financial plans based on their expected joining dates.TCS also recently made changes to its bench policy, which now allows only 35 non-project days annually and requires employees to maintain at least 225 billable days per year.
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