Tata Consultancy Services (TCS), India’s largest IT services firm, is set to lay off around 12,000 employees, about 2% of its global workforce, over the course of the year, the company confirmed in a statement. The move will primarily affect staff in mid- and senior-level roles.
“TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the company told The Economic Times. The transition is being planned with “due care” to ensure that service delivery to clients remains unaffected, it added.
Why is TCS downsizing?
The layoffs come at a time when India’s USD 283 billion IT services industry is undergoing structural shifts due to economic uncertainty and the disruptive impact of artificial intelligence (AI). Demand from key global clients has weakened, prompting several firms to tighten hiring and optimise resources. TCS, a Mumbai-based subsidiary of the Tata Group, had a total workforce of 613,069 as of June 2025. It remains the largest private sector employer in India’s IT landscape.
According to reports, impacted employees will be offered notice period compensation, extended insurance coverage, career transition assistance, and other severance benefits. “We understand that this is a challenging time for our colleagues… We will make all efforts to support them through this transition,” the company said.
Comes amid internal tensions
The decision follows legal action initiated by some TCS employees against a revised internal policy that limits the time staff can remain unbilled. Under the new rules, employees must achieve at least 225 billable days per year and cannot remain on the bench for more than 35 days.
Meanwhile, hiring across India’s top six IT firms dropped sharply in the April–June quarter, with net additions falling by 72% compared to the previous quarter. These companies added just 3,847 employees, down from 13,935 in January–March.
