In a major development that’s drawing attention across the IT sector, Tata Consultancy Services (TCS) is planning to reduce its workforce by 2% during FY26. That’s around 12,000 employees expected to be impacted over the course of the year. If you’ve seen the recent tcs news, you’ve probably heard some buzz—but let’s break it down clearly and simply.
About TCS
TCS is one of the world’s largest IT services companies. With over 600,000 employees globally, the company has played a key role in delivering software, consulting, and outsourcing services across sectors. It’s a major part of the Tata Group and widely seen as a bellwether in the Indian tech space.
What’s Happening With TCS Jobs?
The company has announced that it will be laying off about 12,000 people—roughly 2% of its total workforce. Most of these roles are in mid- and senior-level positions. According to internal updates, junior employees will be mostly unaffected. This tcs layoff plan is expected to continue throughout the current financial year.
Why Is TCS Removing Employees?
This decision didn’t come out of nowhere. TCS is going through a transformation process to align with future technologies. Here are the key reasons driving the move:
- Shift Towards AI and Automation: The company is investing heavily in artificial intelligence and digital services. Some roles are becoming outdated or misaligned with these new directions.
- Skill Gaps: Certain mid- and senior-level employees couldn’t be redeployed due to mismatched skill sets.
- Economic Pressure: Global demand has slowed. Clients are cautious with spending, which has led to delays in projects and uncertainty in new contracts.
- New Bench Policy: TCS recently introduced a new internal rule that limits bench time (time without project assignment) to just 35 days per year. This change has increased pressure on employees to find suitable roles quickly or risk being offboarded.
What Support Will Affected Employees Receive?
According to official communication, TCS plans to handle the process with sensitivity. Those affected will receive standard severance pay, notice-period salary, and extended insurance coverage. There may also be career counseling and placement support for impacted staff.
Is This a One-Time Move?
TCS has called this part of a long-term strategy. The goal is to build a leaner, future-ready workforce that can quickly adapt to client needs and technology changes. While layoffs are never easy, this shift is aimed at preparing for an AI-driven market where fewer, more agile teams may become the norm.
What It Means for the IT Industry
This tcs layoff plan could be a sign of things to come in the broader industry. As large companies embrace automation and digital-first services, similar changes might be seen across other firms. It’s also a reminder that keeping skills current is more important than ever in the tech world.
Disclaimer
This article is based on publicly available information as of July 2025. The details shared are for informational purposes only and may evolve over time. Readers are advised to refer to official TCS announcements for the most accurate updates.
