Tata Consultancy Services (TCS), India’s largest IT services firm, will reduce its workforce by 2 per cent, amounting to over 12,000 jobs in the 2026 financial year, Reuters reported on Sunday. The cuts will mainly impact middle and senior management.
TCS said it is retraining and redeploying staff as it expands into new markets, adopts emerging technologies, and rolls out AI. However, the company confirmed that around 12,200 roles would be eliminated as part of this internal transformation.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” the company stated.
TCS CEO K Krithivasan acknowledged that internal changes stem from evolving technologies and business models.
“We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile,” he said.
Krithivasan explained that while TCS continues to invest in employee development, redeployment hasn’t worked for all roles.
“This will impact roughly 2 per cent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest decisions I have had to take as CEO,” he added.
Addressing speculation, Krithivasan clarified that the decision was not due to AI-led productivity gains or weak macroeconomic demand.
“This is not because of AI but to address skills for the future. This is about feasibility in deployment, not because we need fewer people,” he said.
Earlier this month, the CEO had also noted delays in client decision-making and slow initiation of new projects. The ongoing restructuring is part of a broader plan to align the company’s workforce with its future growth strategy.
The TCS job cuts mark a significant shift in India’s IT sector as companies prepare for a tech-driven future requiring updated skill sets and agile operating models.
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