TCS layoffs: What will Tata Consultancy Services do for 12,000 employees it will let go this year? What the IT giant said
TCS layoffs: India's largest IT services exporter, Tata Consultancy Services (TCS), on Sunday announced that it plans to lay off 2% of its workforce over the year. This decision to reduce its employee strength by around 12,000 will impact its global workforce.
The IT giant said that the people who will be impacted by the move will mostly fall in the middle to senior management category.
Global economic uncertainties and artificial intelligence-driven technological changes are impacting the TCS business operations. At the end of the first quarter of the current financial year, the Tata group subsidiary had a workforce of 613,069 employees.
What Does TCS Plan To Do For Employees Who Will Be Laid Off?
TCS has said that it will give the appropriate benefits, outplacement, counselling, and support to the impacted employees.
According to an ET report, the impacted staff members of TCS will be provided with notice period compensation and severance benefits by the company.
Additionally, TCS plans to give insurance coverage extension and career transition assistance to those affected.
In an official statement the IT giant said: "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.
This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year."
The company further added: "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 move to cut its staff strength comes at a time when TCS is facing resistance for its changed bench policy, which now stipulates a maximum of 35 non-project days annually and requires staff to maintain 225 billable days per year.
TCS has also recently delayed the onboarding of around 600 experienced lateral entry hires.
Global Tech Layoffs Cross 80,000 This Year
Data from Layoffs.fyi, which monitors global technology sector redundancies, indicates that over 80,000 technology professionals across 169 companies have lost their jobs in 2025, according to a PTI report.
Microsoft, which is the world's second most valuable listed company after Nvidia, has dismissed more than 15,000 staff members in 2025, which is 7% of its worldwide workforce.
In a recent communication to his workforce of over 2 lakh employees, Microsoft's Chief Executive Officer Satya Nadella expressed his deep concern regarding this year's staff reductions.
"This is the enigma of success in an industry that has no franchise value," he said in his message to employees.
He continued: "Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding. But it's also a new opportunity for us to shape, lead through, and have greater impact than ever before."
2024 saw approximately 150,000 job losses across 551 technology firms, reflecting both worldwide economic challenges and ongoing discussions within the technology sector regarding AI's influence on employment opportunities, workforce structure, and professional capabilities.
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