Latest news with #K Krithivasan
Yahoo
2 days ago
- Business
- Yahoo
TCS to cut more than 12,000 jobs amid AI-led disruptions
Indian IT services company Tata Consultancy Services (TCS) has announced its intention to reduce its workforce by 2% in response to AI-driven disruptions and macroeconomic uncertainties. This decision will lead to approximately 12,200 job cuts, Reuters reported, citing a company statement. The reductions will primarily affect middle and senior management employees. 'This transition is being planned with due care to ensure there is no impact on service delivery to our clients," TCS said. As of June 2025, TCS had more than 610,000 employees. The announcement came as the Indian IT sector, valued at $283bn, is experiencing similar challenges. Clients are reportedly delaying non-essential technology spending due to weak demand, persistent inflation, and uncertainties surrounding US trade policies. Earlier in July 2025, TCS chief executive K Krithivasan also noted that client decision-making and project initiations are facing delays. The restructuring effort is aimed at transforming the company into a future-ready organisation. 'This includes strategic initiatives on multiple fronts, and while these changes are necessary for our growth and evolution, we understand the impact on our colleagues. We thank them for their service and are committed to supporting them through this transition,' The Times of India quoted Krithivasan as saying in an email to employees. The company is currently focusing on deploying AI and other technologies while exploring new markets and managing an unpredictable demand landscape. In June 2025, TCS announced the establishment of three new facilities in Europe to bolster its presence in the software-defined vehicles sector. This includes two automotive delivery centres in Germany, located in Munich and Villingen-Schwenningen, and an engineering facility in Romania. "TCS to cut more than 12,000 jobs amid AI-led disruptions" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Khaleej Times
3 days ago
- Business
- Khaleej Times
India's TCS to cut 12,000 jobs as demand contracts
Indian IT giant Tata Consultancy Services said on Sunday it will cut around two percent of its global workforce, or about 12,000 jobs, as demand contracts in the sector it leads. The software services firm — India's largest by market cap — said the reductions would mainly affect employees in middle and senior roles and would be rolled out over the course of this year. TCS employs 613,000 people worldwide, and the IT services sector is one of India's biggest employers and revenue earners. The company said the move was part of efforts to become a "future-ready" organisation as it enters new markets and scales up its use of artificial intelligence. "As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible," TCS said in a statement. It said the restructuring was being carried out with "due care" to avoid disruption to client services. After TCS's June-quarter revenue fell short of expectations, CEO K Krithivasan said this month that "continued global macro-economic and geopolitical uncertainties caused a demand contraction". IT services are the most visible part of India's modern economy and historically one of its biggest white-collar job creators, driving the expansion of the middle class. But a slowdown in the sector has seen hundreds of thousands of new graduates struggle to find work.
Yahoo
3 days ago
- Business
- Yahoo
Indian tech company TCS to cut workforce by 2%, affecting more than 12,000 jobs
By Haripriya Suresh BENGALURU (Reuters) -India's largest IT services provider Tata Consultancy Services will reduce its workforce by 2% in its 2026 financial year, primarily affecting middle and senior management, the company said on Sunday. The company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but about 12,200 jobs will be cut as part of the process, it said. "This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company added. India's $283 billion IT sector has had to contend with clients holding back non-essential technology spending because of weak demand, persistent inflation and lingering uncertainty over U.S. trade policies. TCS Chief Executive K Krithivasan said this month that there were delays in client decision-making and project starts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Indian tech company TCS to cut workforce by 2%, affecting more than 12,000 jobs
BENGALURU, July 27 (Reuters) - India's largest IT services provider Tata Consultancy Services ( opens new tab will reduce its workforce by 2% in its 2026 financial year, primarily affecting middle and senior management, the company said on Sunday. The company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but about 12,200 jobs will be cut as part of the process, it said. "This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company added. India's $283 billion IT sector has had to contend with clients holding back non-essential technology spending because of weak demand, persistent inflation and lingering uncertainty over U.S. trade policies. TCS Chief Executive K Krithivasan said this month that there were delays in client decision-making and project starts.
Reuters
10-07-2025
- Business
- Reuters
India's TCS misses first quarter revenue view as CEO flags demand contraction
BENGALURU, July 10 (Reuters) - India's Tata Consultancy Services ( opens new tab reported lower-than-expected first-quarter revenue on Thursday as clients of the $283 billion Indian IT sector stayed cautious amid tariff-related uncertainty. Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter against analysts' average expectation of 646.66 billion rupees, as per data compiled by LSEG. Uncertainty around U.S. tariffs has quashed IT companies' hopes of a revival in client confidence and spending in its biggest market. A survey, opens new tab in May showed two in five tech executives had deferred discretionary projects. "The continued global macro-economic and geo-political uncertainties caused a demand contraction," TCS CEO K Krithivasan said. TCS is the first Indian tech major to report results. Rival HCLTech ( opens new tab reports next week, while Infosys ( opens new tab the week after that. Last month, IT bellwether Accenture's (ACN.N), opens new tab shares dropped as much as 6% after it reported tepid deal-booking numbers in its quarterly results. TCS's revenue in four out of its six verticals fell compared to the same period last year, while banking and financial services' revenue grew 1% and tech services rose 1.8%. Its total order bookings stood at $9.4 billion during the quarter, from $12.2 billion in the previous quarter and $8.3 billion in the year-ago period. "Deal wins remained muted, with client losses in larger contracts and flattish margins," said Sagar Shetty, research analyst at StoxBox. "While green shoots in banking and tech verticals offer some respite, softness in U.S. and Europe raises demand concerns," he said. TCS's net profit rose 6% in the three-month period to 127.60 billion rupees against analysts' estimate of 122.16 billion rupees. The profit beat was largely because of a wage hike delay and a jump in other income. Its shares listed in Mumbai closed 0.1% lower ahead of the results. ($1 = 85.6690 Indian rupees)
