TCS Q2 Attrition Rises To 13.3%, Headcount Falls By 3%

Tata Consultancy Services Ltd. reported a voluntary attrition rate of 13.3% for the July–September quarter, up from 12.3% in the previous quarter, according to a fact sheet released by the IT firm. The company’s total headcount dropped to 593,314 from 613,069 in the first quarter of fiscal 2026, a reduction of nearly 20,000 employees.

TCS released its Q2 FY26 results on Oct. 9, but the official statement omitted attrition and headcount figures, which are usually included. Normally, the company provides details on last twelve months (LTM) attrition, workforce numbers, net profit, revenue growth, and operational metrics in a media statement immediately after quarterly results.

The company said roughly 1% of its workforce, about 6,000 employees, left as part of a restructuring initiative. Chief Human Resources Officer Sudeep Kunnumal called claims of higher layoffs “extremely exaggerated” and urged that such reports be ignored.

Kunnumal on Thursday said, "As we speak today, we are close to 1% of people, that we have released in mid and senior level, whom we could not redeploy in the right role." Asked if 1% translated into 6,000 people only, Kunnumal said, "yes, right at the mid and senior level segment."

The IT workers’ union Nascent Information Technology Employees Senate confirmed the closing headcount at 593,314 for Q2, noting a drop of 19,755 from the previous quarter.

Earlier, TCS said it plans to cut around 2%, or 12,261 employees, from its global workforce this year, mainly in middle and senior roles. The company also indicated it may continue with its previously stated hiring target of over 40,000 for fiscal 2026 but could adjust depending on global market conditions.