TCS to lay off 12,000 employees

28-Jul-2025

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Tata Consultancy Services (TCS), is set to shrink its workforce by about 2 per cent, a move that will affect over 12,000 employees, mostly at the middle and senior levels, over the next year. 

Chief Executive K Krithivasan revealed the plans in an interview with Moneycontrol, framing the decision as part of a broader strategy to make TCS “more agile and future-ready” in the face of rapid technological shifts.

When asked why the company was resorting to headcount reduction, Krithivasan explained that the industry itself is transforming. He said that the ways of working are changing, and for every company to succeed, there’s a requirement to be future-ready and agile.

He said, “We have been calling out new technologies like AI and operating model changes.” According to him, the company has been deploying AI at scale while closely assessing the skills it will need going forward. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities,” he added. However, he admitted that in certain areas “redeployment hasn’t been effective,” which has led to the decision to cut roles.