Layoffs at TCS: 12K Impacted – Here’s What We Know

We’ve been hearing about layoffs at Amazon and Microsoft in recent months, but by and large, Indian IT companies have not announced major workforce reductions. However, in a significant development, TCS has initiated its largest-ever workforce reshuffle, letting go of over 12,000 employees—approximately 2% of its global headcount—as part of a broader push to become a “future-ready organisation.”

The layoffs, first reported by news outlets like Reuters, clearly signal a strategic shift in how India’s largest IT services firm is realigning its talent pool amid rapid technological disruption and evolving business demands. The cuts will predominantly affect mid- and senior-level roles, a segment where TCS claims redeployment has proven especially challenging, despite ongoing reskilling efforts.

The company underscores that this reshaping of its workforce is not driven by AI automation, but rather a result of skills mismatch.

Support Measures for Those Affected

TCS has emphasized that the transition is being handled with “due care” to ensure minimal disruption to client delivery. Affected employees will receive full notice-period compensation, extended insurance coverage, outplacement support, and counselling and transition assistance, according to media reports.

The company, which employs over 600,000 people globally, has assured stakeholders that client commitments remain unaffected. “Our service delivery will continue uninterrupted,” a TCS spokesperson noted in a statement carried by leading news outlets.

TCS Says its a Strategic Realignment, Not to Panic

The move comes at a time when the global IT sector is under intense pressure to optimize operations and re-skill talent for AI-led transformation. TCS has also indicated it is streamlining its managerial layer to enable faster decision-making and execution.

With this layoff, TCS’s decision has reignited conversations about the long-term sustainability of talent planning in India’s $250 billion IT services industry. Analysts point out that while layoffs have historically been rare for Indian IT bellwethers, the new era of AI acceleration, pricing pressure, and demand volatility is forcing even the most established players to adapt.

Are More Layoffs in Store?

For now, TCS insists the cuts are a one-time corrective measure, not the beginning of a trend. Still, for employees navigating the turbulence—and competitors observing closely—it’s a stark reminder that the age of AI is also an age of accountability.
As the company pivots to serve next-generation digital demand, questions remain: Will reskilling efforts catch up fast enough? And how will Indian tech giants evolve their talent strategies in a world where intelligence—human or artificial—can become obsolete overnight?