Tata Consultancy Services (TCS), India’s leading IT services firm, reported a net addition of 5,090 employees in the first quarter of FY26, marking the second consecutive quarter of headcount growth. After a period of muted hiring, the increase signals renewed optimism about future demand and continued investment in workforce development.
However, alongside this growth, the company also reported a slight uptick in attrition. The voluntary attrition rate rose to 13.8% in the June quarter, up from 13.3% in the previous quarter.
During the quarter, TCS employees contributed a cumulative 15 million work hours. Milind Lakkad, Chief HR Officer at TCS, highlighted that the company now has over 114,000 employees trained in advanced AI skills. As of June 2025, TCS’ total global workforce stands at approximately 613,000, up from 607,000 in March.
Bench Policy Sparks Controversy
Recently, TCS’ Resource Management Group (RMG) made headlines for implementing a new policy that puts the onus on employees to secure project assignments. Under this directive, employees are not allowed to remain unassigned, or “on the bench,” for more than 35 days in a calendar year.
The policy has faced backlash from employee advocacy groups. The All India IT Employee Union (AIITEU) strongly criticized the move, condemning the bench-time limit and billability targets. The union expressed concerns over the warning issued to employees: failure to meet billability goals could result in disciplinary action, including potential termination.
Despite these employee concerns, TCS’ recent hiring surge suggests that the company is preparing for an anticipated rise in demand, while also aiming to boost workforce productivity.
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