TCS’s mass layoff will affect approximately 2% of its global workforce, equating to over 12,000 employees, primarily at middle and senior levels, over fiscal 2026 (April 2025–March 2026). The Mumbai‑based IT giant, with about 613,000 employees as of June 2025, confirmed this is its largest-ever restructuring.
TCS CEO K. Krithivasan made one thing clear: the mass layoffs are not driven by AI productivity gains or automation. He emphasized that this decision is due to skill mismatches and cases where redeployment of certain associates was not feasible. “No, this is not because of AI giving some 20 percent productivity gains. We are not doing that. This is driven by where there is a skill mismatch, or, where we think that we have not been able to deploy someone”.
Despite training over 550,000 people in basic AI skills and 100,000 in advanced modules, Krithivasan acknowledged challenges in transitioning more senior personnel into tech-heavy roles. He also noted a strategic shift away from traditional waterfall delivery models toward agile, product-centric workflows, which has diminished demand for multiple leadership layers in project management.
The company described this decision as “difficult but necessary”, assuring that impacted associates will receive notice pay, severance packages, extended health insurance, mental health counselling, and outplacement support.
TCS emphasized that the goal is not to reduce headcount arbitrarily, but to align the workforce with future skills and evolving client demands. As Krithivasan put it, “It is linked to feasibility of deployment—not with the aim of reducing headcount”.
In summary, this workforce adjustment reflects TCS’s broader move to become more agile and future-ready—not simply a response to AI replacing jobs. The focus remains on restructuring to match evolving business needs and skill profiles.
