July 27, 2025 –
Tata Consultancy Services (TCS), India’s leading IT services provider, is set to lay off more than 12,000 employees during the 2026 financial year, as part of a strategic workforce overhaul aimed at aligning with new technologies, including artificial intelligence (AI), and evolving global market demands.
The decision, representing a 2% reduction in TCS’s global workforce, will primarily affect middle and senior-level roles, the company said on Sunday. Despite ongoing efforts to retrain and redeploy existing staff, certain positions have been deemed non-viable in the company’s future-forward strategy.
TCS Chief Executive K Krithivasan acknowledged that while the company is heavily investing in employee reskilling and technological adaptation, some roles have proven difficult to transition. “This will impact roughly 2 percent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest I’ve had to take as CEO,” Krithivasan told Moneycontrol in an interview.
He emphasized that the job cuts are not directly driven by AI’s ability to replace human workers, but rather by the need to equip the organization with the right skills to remain competitive and agile in a rapidly evolving industry. “This is about feasibility in deployment, not about reducing headcount because of AI,” he clarified.
Adapting to a Shifting Landscape
The layoffs come as TCS expands into new global markets and ramps up its adoption of emerging technologies. Krithivasan pointed out that the company is transforming its operating model to match client expectations and technological progress.
“We have been calling out new technologies, particularly AI, and operating model changes. The ways of working are evolving. We need to be future-ready,” he said, adding that delays in client decision-making and the launch of new projects have further complicated the operating environment.
TCS is undertaking the transition carefully to ensure that client services remain unaffected. “This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” the company noted in a statement.
Mixed Reactions Across Social Media
The announcement has triggered widespread reactions across social media platforms, with many expressing concern over the broader implications for the Indian IT sector.
On X (formerly Twitter), one user remarked, “If TCS is laying off 12,000 people, what does that mean for the rest of the IT industry? This looks alarming.” Another post echoed similar fears, stating, “The AI threat isn’t coming – it’s already here. These layoffs at TCS will send ripples across the Indian IT ecosystem.”
The sentiment was echoed on Reddit, where users debated whether the layoffs were a result of AI automation or poor internal resource management. One Redditor commented, “Layoffs are never good news. This clearly shows that job loss due to AI automation is real, and it’s just the beginning.”
Another user criticized internal deployment practices within the company, alleging that talented engineers were often placed in roles that didn’t match their skillsets. “Many skilled coders with deep technical expertise are stuck in support or service desk roles. TCS has wasted its talent pool due to rigid internal processes and lack of foresight,” the comment read.
Looking Ahead
While TCS has reaffirmed its commitment to employee development, the latest move underscores the growing challenges traditional IT companies face as they navigate rapid technological disruption.
Industry analysts believe that similar restructuring could be expected from other major IT firms in the near future, especially as companies continue to assess their workforce needs in light of AI, automation, and digital transformation.
Despite the layoffs, TCS remains committed to growth and innovation. The company is expected to continue hiring for roles aligned with next-generation technologies such as AI, cloud computing, cybersecurity, and data science.
As the IT sector grapples with these changes, TCS’s decision marks a significant moment in India’s corporate landscape—one that highlights the growing urgency for both companies and professionals to adapt to the realities of a tech-driven future.
