TCS Layoffs 2025: India’s largest IT services company, Tata Consultancy Services (TCS) confirmed plans to lay off approximately 12,000 employees globally, amounting to about 2% of its total workforce of 6,13,000 as of June 30, 2025. The workforce reduction will be carried out gradually over Financial Year 2026 (April 2025 – March 2026) as part of a broader organizational restructuring.
This image is an AI generated
Why Is TCS Laying Off Employees?
The company stated that the layoffs are aimed at building a leaner, more agile, and future-ready organisation, aligned with changing client demands and evolving business models.
TCS CEO K. Krithivasan emphasised that the decision is not directly driven by AI‑related productivity gains (estimated at 20%) but stems mainly from skills mismatches and the inability to effectively deploy certain employees, particularly at mid and senior levels.
“This move is about realignment. We are preparing for the future, and some roles no longer match our operational needs,” Krithivasan explained.
Who Will Be Affected?
- Primary Impact: Mid‑ and senior‑grade employees
- Secondary Impact: Certain junior staff on prolonged “bench time” (not currently deployed on any project)
- Geographic Scope: Layoffs will occur across all regions and service lines, with no single vertical or location singled out.
Context: Upskilling vs. Redeployment
TCS has made significant investments in AI training and upskilling, training more than 5.5 lakh employees in foundational AI and over 1 lakh in advanced AI and emerging technologies.
However, retraining has not always led to redeployment, especially for senior professionals who face challenges adapting to new, technology-intensive roles.
Employee Support Measures
To ease the transition, affected employees will receive:
- Notice-period pay and severance packages
- Extended insurance coverage
- Outplacement assistance, including career counselling and support services
TCS has assured that the process will be handled with compassion and fairness, maintaining uninterrupted client service.
Industry and Economic Backdrop
The layoffs mirror broader trends in India’s $283 billion IT services industry, which is grappling with slower client spending due to economic uncertainty, inflation, and geopolitical tensions. Additionally, AI adoption and automation are reshaping the sector, pushing companies like TCS to rebalance their workforce to stay cost-competitive amid rising client demands for 20–30% cost reductions.
Leadership Perspective and Public Reaction
Krithivasan, who took over as CEO in 2023, described the move as “one of the most difficult decisions” of his tenure.
The announcement has triggered debate, especially following disclosures of his ₹26.52 crore compensation package for FY25, which has drawn criticism on social media given the scale of the layoffs.
More details you can visit https://youtu.be/Xp27_oHo-N0?si=el4m3hOJQN3MJl9M