India’s IT giant TCS to cut 12,000 jobs as part of strategic workforce realignment

India’s largest IT services firm, Tata Consultancy Services (TCS), is preparing to trim its global workforce by around 2% over the next year, affecting approximately 12,000 employees. The reduction, which will largely target middle and senior management, reflects the company’s evolving approach to workforce agility and technological adaptability.

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With over 6.13 lakh employees as of June 2025, TCS has been actively integrating emerging technologies like artificial intelligence and revisiting its operational models. This transition has prompted the company to reassess internal resource deployment and skill alignment. While TCS continues to invest in employee training and reskilling, inefficiencies in redeploying talent have necessitated targeted job cuts.

The layoffs are not being attributed directly to automation or AI, but rather to a broader organizational shift focused on future-readiness. The company maintains that junior-level staff will remain unaffected and emphasized support measures for impacted personnel, including severance pay, health benefits, and career transition assistance.

The layoffs also coincide with a refined approach to bench management, aimed at encouraging unassigned staff to seek project roles actively. As the IT sector continues to evolve, TCS’s recalibration signals a prioritization of skills over scale, aligning its workforce with the shifting demands of the digital age.