India’s top IT company Tata Consultancy Services has announced a workforce reduction of about 12,000 employees globally in 2025, focusing on organizational restructuring and AI-led transformation. The announcement caused TCS shares to fall nearly 2%.
Tata Consultancy Services (TCS) witnessed a decline of nearly 2% in its stock value on July 28, 2025, after the company announced plans to lay off approximately 12,000 employees from its global workforce this year. The decision, which affects about 2% of its total workforce of 6,13,069 as of June 30, 2025, is part of TCS’s broader strategic move to transform into a “future-ready organisation.”
The stock dropped 1.69% to ₹3,081.20 on the BSE and 1.7% to ₹3,081.60 on the NSE, as investors reacted to the announcement with concern. The layoffs will primarily affect middle and senior management levels, highlighting a targeted shift in leadership and operational structure.
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TCS, India’s largest IT services company, added 5,000 employees in the June quarter of FY26. Despite this, the company cited the need for realigning talent towards areas of strategic importance such as artificial intelligence deployment, market expansion, and advanced technology investments.
In its official statement, TCS noted that it has initiated several reskilling and redeployment programs to upskill its workforce for future growth areas. However, it acknowledged that redeployment may not be feasible in all cases, necessitating the release of a certain segment of its employees.
We will be releasing associates whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year.”
TCS
TCS has committed to providing benefits, outplacement services, counseling, and transition support to the affected employees as part of its workforce transition process.
This development comes amid sluggish revenue growth across India’s IT industry in Q1 FY26. The sector has been navigating a challenging macroeconomic landscape, marked by geopolitical tensions, slower global tech demand, and delayed client spending. While TCS continues to emphasize long-term transformation, the near-term financial pressures are evident.
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Market analysts interpret this move as an indication of structural recalibration, rather than immediate cost-cutting. With growing focus on AI integration, TCS aims to improve operational agility, customer delivery, and margin optimization in the medium to long term.
As one of the bellwethers of India’s IT industry, TCS’s decisions will likely set the tone for future workforce strategies across the sector.
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