TCS Announces Major Workforce Reduction of 12,000 Jobs; Managers Asked for Recommendations
MUMBAI, Maharashtra, India – July 29, 2025: Tata Consultancy Services (TCS), India’s largest IT services company, said it was reducing its workforce by a significant number of around 12,000 employees, which is almost 2% of its global regime, mainly for middle and senior management. The move, unprecedented for TCS, is happening at a time of difficulty in the global economy. Additionally, it is part of a change in thought toward transformation into a more “future-ready” organization. As per reports, managers have been asked to give names to be on their “pink list”;
1. Scope and Impact of the Layoffs
TCS confirmed that the layoffs would involve about 12,261 employees globally. The layoffs are scheduled to take place in phases during the Financial Year 2026. As of June 30, 2025, the company had a total employee base of 613,069, out of which most of the affected employees will be from mid- and senior-level positions.
2. Reasons Cited: Skill Mismatch, Not AI
While the various trends involving jobs attributed to Artificial Intelligence (AI) have become a talking point for the broader tech industry, TCS CEO K. Krithivasan has clarified that it is not AI-led productivity gains that have driven the job cuts through the skill mismatch and deployment feasibility issues. According to Krithivasan, the layoffs were due to what he called “skill mismatch” and deployment feasibility issues. He observed that despite considerable training initiatives, some employees at the senior levels are not matching the evolving skill requirements for the entry-level or advanced jobs.
3. Support for Impacted Employees
The TCS has pledged to support all affected employees, including damaged notice periods and severance benefits, extended insurance coverage, and support in transitioning to a new job, including things such as outplacement services and counselling assistance. The company committed itself to this transition “in a compassionate way.”
4. Ministry of IT Monitoring the Situation
The reference from the Meit-Yon Ministry of Electronics and Information Technology of India is that it is reportedly monitoring the situation closely. Sources also said the ministry has been in touch with TCS to understand the background of the layoff. The government is still talking about upskilling and job creation by the sector.
5. Broader Industry Trends and New HR Policies
The declining numbers in the workforce at TCS are representative of a larger trend in Indian IT, marked by an uncertain global demand, macroeconomic uncertainties, and a shift to efficiency and AI-led delivery models. This announcement was made public after other modifications in TCS’s internal HR policies, such as mandating a minimum of 225 billable days in a year and a bench period of not more than 35 days, all aiming towards maximum operational efficiency and productivity.
