TCS to Lay Off Over 12,000 Employees in Major Workforce Restructuring

Tata Consultancy Services (TCS), India’s largest IT services firm, will reduce its global workforce by 2% in the financial year 2026—affecting approximately 12,200 employees, primarily from middle and senior management—Reuters reported on Sunday, citing company statements.

The cuts are part of a strategic shift as TCS focuses on emerging technologies and new market opportunities, including large-scale deployment of artificial intelligence (AI). While the company is investing in retraining and reskilling initiatives, it acknowledged that redeployment has not been fully effective for some roles.

CEO Krithivasan: “One of the Toughest Decisions”

In an interview with Moneycontrol, CEO K. Krithivasan explained that the transition is driven by evolving technologies and operational models—not by AI-induced redundancy or macroeconomic pressures.

“This is not because of AI but to address skills for the future,” he clarified. “This is about feasibility in deployment, not because we need fewer people.”

He added,

“Despite our significant investments in employee development, we find that there are roles where redeployment has not worked. This will impact roughly 2% of our global workforce… one of the toughest decisions I have had to take as CEO.”

TCS emphasized that the downsizing will be executed with “due care” to ensure no disruption to client service delivery.

Onboarding Delays Leave 600+ Recruits in Limbo

Amid the restructuring, TCS has also allegedly delayed the onboarding of over 600 experienced professionals without prior notice, according to The Economic Times. Many of the affected candidates have resigned from previous positions, only to be left in uncertainty and financial distress.

TCS has responded, asserting its commitment to honoring all offers—both for freshers and experienced hires—but noted that joining dates are subject to business requirements.

“Everyone who has received an offer from TCS will be onboarded,” a company spokesperson said. “We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon.”

NITES Seeks Government Intervention

The Nascent Information Technology Employees Senate (NITES) has condemned the delays, labeling them “exploitative practices” and a “criminal breach of trust.” The group has written to Union Labour and Employment Minister Mansukh Mandaviya, seeking immediate intervention.

NITES claims many affected professionals are under severe financial strain and criticizes TCS for not officially communicating the onboarding freeze.

Industry Impact

These developments mark one of the most significant talent-related disruptions in India’s IT sector in recent years, raising broader concerns about workforce planning, ethical hiring practices, and the human cost of digital transformation.