Tata Consultancy Services (TCS), India’s largest IT services provider, has announced that it will lay off approximately 2% of its global workforce, affecting nearly 12,000 employees. This strategic move is part of a larger effort by the company to restructure its operations and align its talent pool with evolving business demands and digital priorities.
The announcement comes amid growing pressure on global IT firms to remain competitive in a rapidly changing technological and economic landscape. As businesses worldwide adopt automation and artificial intelligence (AI) to improve efficiency and reduce costs, traditional IT roles are being phased out or redefined.
Reasons Behind the Decision
In a statement to the media, TCS emphasized that the layoffs are not a cost-cutting measure alone but rather a result of strategic realignment.
“We are continuously adapting to technological advancements and client expectations. This workforce optimization is part of our long-term vision to stay future-ready,” a TCS spokesperson said.
The key drivers behind the move include:
Automation of Low-Level Tasks: Many functions that previously required human intervention are now handled by AI and machine learning systems.
Redundancy in Non-Billable Roles: Employees without active project assignments (often referred to as “bench” staff) have been particularly vulnerable.
Global Economic Slowdown: Weak demand in key markets like the US and Europe has led clients to delay or scale down IT projects.
Operational Efficiency: With shareholder expectations mounting, TCS is focusing on efficiency and margin improvement across business units.
Although the company has not officially released department-wise data, internal sources suggest that the layoffs will primarily target:
Mid-level professionals with 7–15 years of experience
Employees in support roles and administrative functions
Workers in legacy technology domains that are being phased out
Notably, TCS has also indicated that certain overseas positions, especially in regions with high operational costs, may be impacted more than domestic roles.
However, the company clarified that impacted employees will be provided with support, including severance packages, career transition services, and in some cases, opportunities for internal redeployment.
TCS is not the only IT giant undergoing workforce restructuring. The global tech industry has witnessed an ongoing wave of job cuts over the past two years:
Accenture laid off 19,000 employees in 2024
Infosys and Wipro have announced hiring freezes and internal reassignments
Amazon, Meta, and Google also made significant headcount reductions during their digital overhauls
Industry experts say these moves are not simply cost-related but reflect a deeper transformation of the tech workforce.
“This is part of a global shift. The roles of the past are no longer relevant. Skills like AI, cloud computing, cybersecurity, and analytics are the new currency,” says Anshuman Sharma, a tech workforce strategist based in Bengaluru.
TCS has long been considered a bellwether of the Indian IT industry, known for its employee-centric policies and relative stability. The decision to cut jobs—albeit just 2%—marks a major shift in its traditional stance.
For many, this announcement is a wake-up call that no job is future-proof in the age of AI and automation. The company’s focus now shifts to retraining and reskilling its remaining workforce to handle emerging technologies and changing client demands.
While the layoffs are a painful but necessary move for TCS, they signal a broader trend of digital disruption and talent realignment across the IT sector. As the company pivots toward innovation and next-gen technologies, the message is clear: adaptability, learning, and foresight are now as important as experience.
