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India’s largest IT service firm, TCS, plans to lay off 12,000 employees, which accounts for a total of 2% of its global workforce. This decision comes two weeks after the company announced its focus on increasing wages for its 6 lakh workforce. According to the report, TCS’s current workforce is around 613,069 as of June 30, 2025. Recently, it increased its workforce by 5000 employees in the last April-June quarter.
The Reason behind the Layoff
As reported by the company, TCS has taken this move to adapt and evolve towards the future and will focus more on technology, mainly in AI deployment and market growth. This growth plan will include investment in technological advancements, expanding into new markets, AI deployment for the clients, making stronger partners, and crafting next-generation infrastructure.
With these decisions, the reduced demand for non-technical managerial roles like project and program managers is visible. Shortly, the delivery model is looking for more tech-based talent and direct client communications.
Supported Offered by TCS
All the employees impacted by this layoff will get packages apart from their notice-period compensation with extended insurance, out-of-place support, and counselling services. This layoff will not be limited by geography or business segments.
In an interview, K Krithivasan, the MD and CEO of TCS, said, These decisions are mainly about the shift in operating models, focus on AI, changes in client expectations, and movement towards product-aligned, agile delivery structures.
He further said, This is not done due to the benefits of AI. It is done where there is a skill mismatch or where the company can deploy someone.
The company made a significant investment in its resiliency programs, training more than 550,000 employees in the foundational AI and 100,000 in advanced AI.
