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TCS announced layoffs of about 12,000 employees, around 2% of its workforce
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Speculation on social media claimed 80,000 TCS employees were asked to resign
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TCS denied these claims, calling them incorrect and misleading
Tata Consultancy Services (TCS) in July had issued a statement that the company was going to lay off 12,000 employees. However, the number is much more than what is being said, if speculations on social media are to be believed.
Soham Sarkar, on X (formerly Twitter), claimed that according to his college friend, who had worked at TCS for 15 years, almost 80,000 employees were asked to resign. The post also claimed that while some employees received severance packages for up to 18 months, others received no severance pay.
The post read, "Met a college friend who works at TCS, and according to him, around 80,000 (yes, 80k; it’s not a typo) employees have been let go so far – some with 18 months' salary, some with 3 months, and some with zero severance package. This is a staggering number, and I am sure it will spill over to other IT services firms." [sic]
However, NDTV Profit got in touch with a representative of TCS who informed that these speculations are incorrect.
"These speculations are incorrect and misleading. As communicated earlier, the impact is limited to 2% of our workforce," TCS said in a statement.
Layoffs In TCS
Earlier in July, TCS announced that it will lay off about 12,000, or 2%, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades. Around 12,261 employees were impacted by this move. As of June 30, 2025, the TCS workforce stood at 6,13,069. It increased its workforce by 5,000 in the recently concluded June quarter.
The move is part of the company's broader strategy to become a 'future-ready organisation', focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement.
"Towards this, a number of reskilling and redeployment initiatives have been underway. 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," it said. TCS said that they will provide appropriate benefits, outplacement, counselling, and support to the impacted employees.
The move comes at a time when India's top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making.
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