TCS Plans To Trim Around 12,000 Jobs, Cut Workforce By 2% In FY26
TCS plans to retrain and redeploy staff as it spreads into new markets by adopting advanced technologies and integrates AI.
India's IT giant Tata Consultancy Services has disclosed plans to slash its workforce by 2% in fiscal year 2026, affecting the middle and senior management.
TCS announced plans to retrain and redeploy staff as it spreads into new markets by adopting advanced technologies and integrates AI. Around 12,200 roles will be removed as part of the transition.
"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company said.
"We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities," it added.
India’s $283 billion IT industry is facing headwinds, with clients scaling back non-essential technology spending due to lesser demand, continued inflation, and ongoing uncertainty around the U.S. trade policies.
IT Staff Body Raises Red Flag
On TCS' planned job cut move, Nascent Information Technology Employees Senate (NITES) expressed concern. Such mass layoffs not only create widespread uncertainty among employees but also raise serious ethical and legal questions, especially when executed without adequate transparency and justification, its president Harpreet Singh Saluja said.
"Abrupt termination of thousands of employees without exploring avenues for reskilling, redeployment, or even voluntary separation undermines the foundational values of job security and social responsibility. Many of these employees have invested years of dedicated service, and decisions like these disregard the human impact involved," Saluja said.
NITES has urged the Ministry of Labour and Employment to "immediately intervene" and seek an explanation from TCS.
"We also demand that the company follow due process under labour laws, including consultation with employees and their representatives... Mass layoffs cannot become a default strategy in the name of optimisation or business realignment. The IT industry must uphold fairness, compassion, and compliance with India’s labour laws," Saluja added.
TCS CEO K Krithivasan recently spoke about the delays in client decision-making and project launches that impacted the business momentum.
In its June quarter, TCS reported a 4% rise in net profit , in line with estimates, while revenue declined sequentially.
The consolidated bottom-line rose to Rs 12,760 crore from Rs 12,224 crore in the previous quarter. Bloomberg had estimated profit at Rs 12,253 crore.
Revenue fell 1.6% sequentially to Rs 63,437 crore from Rs 64,479 crore. The analyst consensus estimate tracked by Bloomberg was Rs 64,655 crore.
