Karnataka labour minister mulls intervention after TCS decides to layoff 12,000 employees
TCS has announced plans to reduce its global workforce by two percent during the 2025–26 financial year, impacting approximately 12,000 jobs.
Karnataka Labour Minister Santosh Lad has described the large-scale layoffs at Tata Consultancy Services (TCS) as "alarming," after the IT giant announced plans to cut over 12,000 jobs globally in the 2025-26 financial year.
TCS, India’s largest IT firm, stated it would reduce about two per cent of its global workforce as part of a strategic restructuring. The company said the move is aimed at enhancing agility and preparing for future demands, not driven by AI-led efficiency gains.
"This is quite unusual. Suddenly laying off 12,000 people, and that too at TCS, is a big number. It's alarming. Our teams are in touch with them, and I will also look into the reasons behind it. We will examine the legal aspects, especially in terms of labour law. Historically, sunrise sectors have been granted some leniency,” Minister Lad said on Wednesday.
One of the biggest layoffs by TCS
This is among the biggest rounds of job cuts in TCS's history. Most of those affected are mid to senior-level professionals, though some junior employees, particularly those who have remained on the bench for extended periods, are also being impacted.
TCS CEO K Krithivasan, in comments reported by Moneycontrol, clarified that the decision is part of a long-term plan to reshape the company’s workforce. “It’s not that we need fewer people. We will continue acquiring, training, and investing in high-quality talent. This is more about how and where talent can be effectively deployed,” he said.
TCS has already trained over 550,000 employees in basic AI and around 100,000 in advanced AI. However, adapting to new technologies has proven difficult for many, especially those in senior positions who are more accustomed to traditional project structures.
The Tata Group company has announced it will lay off more than 12,000 employees this year, amounting to around 2 per cent of its global workforce. The impact will be felt most sharply among mid and senior-level professionals.
It said the decision is part of a broader strategy aimed at transforming TCS into a “future-ready organisation.” This includes a strong focus on emerging technologies, AI deployment, global market expansion, and aligning its workforce with evolving business needs.
Tarun Pathak, Research Director at Counterpoint Research, noted that the move reflects a mix of macroeconomic headwinds, changing client demands, and an industry-wide shift toward agile, outcome-based delivery models. He added that the introduction of a more stringent bench policy indicates the company’s increased emphasis on workforce efficiency.
While TCS has stated that the layoffs are not directly linked to AI-driven efficiency gains, the decision comes at a time when automation and AI are playing a growing role in reshaping workforce strategies across the tech sector.
With inputs from PTI