New Delhi: Tata Consultancy Services (TCS), one of India’s top IT firms, is set to lay off more than 12,000 employees about 2 per cent of its total workforce over the course of fiscal year 2026. This major restructuring is part of the company’s effort to stay agile and better aligned with the fast-evolving tech landscape and changing work models, according to a report by Moneycontrol.
This move will affect employees across different roles and regions worldwide. TCS CEO K Krithivasan told Moneycontrol that the decision was driven by the changing demand for skills and challenges in reallocating staff within the company.
TCS CEO K Krithivasan explained that the company’s decision comes in response to major shifts in the tech landscape. As new technologies like AI reshape how businesses operate, staying ahead means adapting quickly. “We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile. We have been deploying AI at scale and evaluating skills we will be requiring for the future,” he said.
He further shared that TCS has put in considerable effort to train and upskill its employees for new roles. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities. Still, we find that there are roles where redeployment has not been effective,” he said.
Krithivasan explained that the company has been adopting AI at scale and closely assessing the skills needed for the future. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities,” he said. However, he acknowledged that some roles couldn’t be effectively realigned. “This will impact roughly 2 per cent of our global workforce, primarily at middle and senior levels,” he told Moneycontrol.
Tata Consultancy Services (TCS), India’s largest IT services firm, added 6,071 employees in the April–June 2025 quarter, bringing its total workforce to 6,13,069 as of June 30. On a net basis, the company’s headcount rose by 5,090 in Q1 FY26, as per its regulatory filing. Meanwhile, TCS’ IT services attrition rate (on a last twelve-month basis) increased slightly to 13.8 per cent in Q1 FY26, up from 13.3% in the previous quarter and 13 per cent in the December 2024 quarter.
