Tata Consultancy Services (TCS), India’s largest IT company, said it will cut about two percent of its workforce—more than 12,000 jobs—during the financial year 2026. Most of the job cuts will be in middle and senior management roles.
The company explained that it is preparing for the future by entering new markets, using new technologies, and adopting artificial intelligence (AI) in its work. While TCS is retraining and moving some employees to different roles, it admitted that for some positions, redeployment has not worked.
“This transition is being planned carefully so that there is no effect on the services we provide to our clients,” TCS said.
Chief Executive Officer K Krithivasan called the decision “one of the toughest” he has had to make. He said, “We have been talking about new technologies, especially AI, and about changes in the way we work. We need to be ready for the future and more flexible. Even though we have invested a lot in helping employees grow and find new career opportunities, there are roles where redeployment has not been effective. This will impact about two percent of our global workforce.”
He also made it clear that the layoffs are not because AI is replacing jobs. “This is not because of AI but to address skills for the future. This is about whether we can place people in the right roles, not because we need fewer people,” Krithivasan said.
Earlier this month, he had mentioned that decisions by clients and the start of new projects were getting delayed, which also affected the company’s operations.
Many people reacted strongly to the news online. One person wrote on X, “TCS is laying off 12,000 employees over the course of the year. If TCS is laying off, then what will happen in other IT firms? It looks horrible.” Another user said, “The AI threat is not coming in the future. It’s already here. These layoffs will have a big effect on India’s IT sector.”
On Reddit, someone commented, “Layoffs in any company are not good news. TCS laying off employees shows that job loss due to AI automation is real. Now competition will increase and salaries will go down. Don’t think that mid- and senior-level employees are lazy or useless. This is more about companies versus workers.”
Another person criticised the company’s internal system: “Many employees want to learn new technologies and grow in TCS, but the company doesn’t look at what employees want, what their skills are, or what they hope to do. I have seen very good coders working in support or service desk roles. Their talent is wasted. The problem is not with engineers but with management.”
