Tata Consultancy Services to cut 12,200 jobs, retrain and redeploy staff

Tata Consultancy Services (TCS) plans to cut its workforce by 2% in 2026, affecting over 12,000 jobs primarily in middle and senior management. The company is retraining and redeploying staff as it enters new markets, invests in new technology, and deploys AI. The decision comes amid weak demand and lingering uncertainty over US trade policies affecting the $283 billion IT sector.

In a significant move, Tata Consultancy Services (TCS) has announced plans to cut 2% of its global workforce, amounting to over 12,000 jobs, primarily impacting middle and senior management positions. This strategic decision is part of the company's broader initiative to become a "future-ready" organization [1].

The layoffs are being framed as a push towards building a "future-ready generation" through reskilling and redeployment. TCS is investing heavily in new technology areas, entering new markets, and deploying AI at scale for both clients and the company itself. The company has emphasized that this transition is being planned with due care to ensure no impact on service delivery to clients [1].

The decision comes amid weak demand and lingering uncertainty over US trade policies, which have been affecting the $283 billion IT sector. According to TCS, the continued global macro-economic and geopolitical uncertainties have led to a demand contraction. However, the company reported a 6% growth in its consolidated net profit for the first quarter ended June 2025, reaching Rs 12,760 crore from Rs 12,040 crore in the year-ago period [1].

TCS's move is expected to create uncertainty in the Indian IT industry, with industry experts anticipating that other major firms may follow suit. The company's actions could set a precedent, prompting similar measures across the industry and raising concerns among employees about job security and long-term career stability.

TCS has assured that it will provide appropriate benefits, outplacement, counseling, and support to the employees affected by the layoffs. The company remains closely connected to its customers to help them navigate the challenges impacting their business through cost optimization, vendor consolidation, and AI-led business transformation [1].

References:
[1] https://indianexpress.com/article/business/companies/tcs-swings-the-axe-12200-jobs-to-be-cut-in-brutal-industry-shake-up-10153205/lite/