TCS shares drop nearly 2% as company announces layoff of 12,000 employees

Hindustan Times

6 days ago

Shares of Tata Consultancy Services (TCS) dropped nearly 2% on Monday after the company revealed plans to cut around 12,000 jobs this year, citing the need to future-proof operations. On the BSE, the stock declined 1.69% to ₹3,081.20, while on the NSE, it slipped 1.7% to ₹3,081.60 in the morning. As of June 30, 2025, TCS employed 6,13,069 people, having added 5,000 in the April–June quarter.(Bloomberg)
As of 1.07 pm, TCS shares are trading at ₹3,096.10 on the NSE and ₹3,096.00 on the BSE.
India's largest IT services company is set to reduce around 2% of its global workforce – approximately 12,261 employees – mostly from middle and senior management levels. TCS clarified that those being let go are in roles where redeployment is not feasible.
As of June 30, 2025, the company employed 6,13,069 people, having added 5,000 in the April–June quarter.
In a statement, TCS said the move is part of a broader transformation strategy aimed at adapting to evolving technologies like artificial intelligence (AI), expanding into new markets, and aligning talent with future business needs.
'Several reskilling and redeployment programs have been in progress. However, some associates will be released as their roles cannot be restructured to match future demands,' the company said.
TCS also committed to offering support, including severance benefits, career counselling, and outplacement services to affected employees.
'One of the toughest decisions': CEO K Krithivasan
CEO K Krithivasan told Moneycontrol that the restructuring was driven by technological changes and evolving business models. 'We've been highlighting the rise of AI and the shift in operating models. Our ways of working are changing, and we must be agile and ready for the future,' he said.
He acknowledged that despite the company's investment in reskilling, some roles remained redundant. 'This is one of the toughest decisions I've had to make as CEO,' he added.
TCS's decision comes against the backdrop of muted growth in the Indian IT sector. Top software exporters reported single-digit revenue growth in Q1 FY26, with subdued client spending due to global economic uncertainty and geopolitical tensions.
The layoffs reflect growing pressures on India's $280 billion IT services sector as clients tighten budgets and redirect focus towards AI-driven solutions. So far in 2025, TCS shares have fallen over 22%, weighed down by concerns over contract renewals and sluggish demand.