Why TCS Is Cutting 12,000 Jobs Over The Next Year?
India’s IT giant Tata Consultancy Services (TCS) is reportedly set to cut 2% of its global workforce, totalling nearly 12,000 employees over the next year. India’s largest IT firm’s strategic restructuring amid AI-driven shifts is expected to have a significant impact on middle and senior management levels.
As per the TCS’s CEO, K. Krithivasan, reportedly said that the middle and senior roles will be impacted, and this is the result of a lack of feasibility and redeployment of workforce. The decision came amid a large gap in skills and a technology shift, the TCS CEO said.
These jobs are likely to get impacted over the next few months, as throughout the Financial year 2026, TCS will undertake the reported restructuring exercise.
TCS is increasingly integrating AI across operations and client solutions, which is likely to eliminate certain roles as automation replaces traditional work processes, affecting middle and senior management positions.
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The company is actively aligning its workforce to support investments in next-gen technologies, entry into new markets, and operating model modernization.
Moreover, Global economic uncertainty has led to delayed tech spending by clients. This trend has combined with cost sensitivities in IT procurement, pressureing firms like TCS to optimize headcount.
TCS stock fell 4.94% recently to INR 3,140, despite a 37.63% rise over five years, suggesting investor concern over job cuts.
Notably, TCS is India’s largest private sector employer with over six lakh employees. It is also considered a barometer for India’s IT industry, so if TCS is doing this, the question is whether other tech services companies will follow the same track. However, the course of the decision will have to be seen in the coming days.
According to The Economic Times, TCS’s new 35-day bench policy, effective from June 12, 2025, has sparked concerns among employees about potential large-scale layoffs, indicating a proactive shift to adapt to technological evolution.
