Tata Consultancy Services (TCS), India’s largest IT services firm, will cut around 12,200 jobs—roughly 2% of its global workforce—during the 2026 financial year as part of a major restructuring process. The move, according to a Reuters report citing the company, will predominantly affect middle and senior management roles.
While the company is investing heavily in new technologies like artificial intelligence (AI), expanding into new markets, and retraining employees, it acknowledged that not all roles could be redeployed effectively. “This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” the company assured.
TCS CEO K Krithivasan, in an interview with Moneycontrol on Sunday, shed light on the rationale behind the layoffs. “We’ve been adapting to changes in technology and operating models. Our ways of working are evolving—we need to stay future-ready and agile,” he explained. “We have been deploying AI at scale and reassessing the skills we’ll need going forward.”
Despite significant investment in employee development, Krithivasan admitted, “We find that there are roles where redeployment has not been effective. This will impact roughly 2% of our global workforce, primarily at the middle and senior levels. It has not been an easy decision—this is one of the toughest I’ve had to make as CEO.”
Clarifying speculation around AI-driven layoffs, Krithivasan stated that the decision was not about replacing people with AI but about aligning with future skill requirements. “This is about feasibility in deployment—not because we need fewer people.”
Earlier this month, Krithivasan acknowledged delays in client decisions and slowdowns in new project launches, further indicating the company’s need to adapt to a shifting business environment.
Reactions Online
The announcement sparked a wave of concern across social media platforms.
An X (formerly Twitter) user posted, “TCS is laying off 12,000 employees. If they are doing this, what will be the state of other IT companies? This looks terrifying.”
Another user highlighted the growing presence of AI, writing, “The AI threat isn’t coming—it’s already here. With TCS laying off more than 12,000 people, it signals massive implications for India’s IT sector. These are mostly middle and senior staff who couldn’t be reskilled or redeployed. This is huge.”
On Reddit, frustration and concern were equally evident. One commenter said, “Layoffs are never good news. TCS’s decision shows that job losses due to AI and automation are already happening. Competition will rise, and salaries may fall. Don’t assume those laid off were lazy or useless—it’s a systemic issue: companies vs workforce.”
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