TCS to Cut Over 12,000 Jobs in 2026 as Part of Strategic Workforce Overhaul
Tata Consultancy Services (TCS), India’s largest IT services company, will lay off more than 12,000 employees—approximately 2% of its global workforce—during the 2026 financial year. The job cuts will primarily affect middle and senior management roles, the company confirmed to Reuters on Sunday.
The move comes as TCS adapts to changing technological demands, with a growing focus on artificial intelligence (AI), new operating models, and market expansion. While the company is actively retraining and redeploying staff for future needs, it acknowledged that certain roles no longer align with its evolving business requirements.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” the company said in a statement.
In an interview with Moneycontrol, TCS CEO K Krithivasan said the decision stemmed from a broader shift in the company’s direction. “The ways of working are changing. We need to be future-ready and agile,” he said, adding that AI is being deployed at scale across operations. “Despite our investments in employee development and career opportunities, we find that some roles are no longer feasible for redeployment.”
Krithivasan clarified that the layoffs were not directly driven by AI-related efficiency gains or macroeconomic concerns. “This is about ensuring the right skills for the future. It’s not about needing fewer people—it’s about needing people with different capabilities,” he explained. He described the decision as “one of the toughest” he’s made as CEO.
Online Reactions Reflect Anxiety Over AI and Job Security
The announcement triggered a wave of responses on social media, with many expressing concern over the growing impact of automation and AI on the IT sector.
“If TCS is laying off 12,000 employees, what will the situation be in other IT firms? Looks horrible,” one user posted on X.
Another added, “The AI threat is not coming anymore. It’s already here. TCS’s layoffs will have huge ramifications for the Indian IT sector.”
On Reddit, users voiced frustrations with internal inefficiencies. One comment read: “Many talented employees want to work on emerging technologies, but are stuck in support or service desk roles. TCS isn’t utilising their expertise—this is more about management and HR than employee capability.”
Another user added, “Layoffs shouldn’t be blamed on employees being lazy. It’s a broader issue of how companies manage talent and adapt to change.”
Despite the criticism, TCS has stated its commitment to future-proofing its workforce and supporting staff through upskilling initiatives. The challenge, however, lies in ensuring that its transformation strategy is executed without alienating experienced employees or undercutting morale across the organisation.
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