Tata Consultancy Services (TCS) has reported that its employee count went down by 11,151 in the third quarter of financial year 2025 – 2-26 (Q3 FY26). The quarter started in October 2025 and ended in December 2025.
This was the second consecutive quarter in which TCS showcased a significant drop in headcount. The company had a total of 593,314 employees at the end of the September quarter, and it went down to 582,163 by the end of Q3 FY26. In Q2 FY26, TCS had seen a decrease of 19,755 employees, having had 613,069 at the start.
As for Q1 FY26, TCS had actually added a total of 13,090 employees in that quarter.
In July 2025, TCS revealed its plans to cut its workforce by around 2% (12,200 employees). However, the numbers from the past two quarters indicated a much larger scale of reduction and attrition.
Sudeep Kunnumal, CHRO at TCS, stated that the company’s transformation towards an AI-first operating model remains central to its talent decisions.
“Our associates are at the heart of our transformation into an AI-first enterprise,” said Kunnumal, adding that more than 217,000 employees now have advanced AI skills, directly supporting client engagements at scale. As per TCS, the company’s intake of fresh graduates with higher-order skills has doubled even with the decrease in overall headcount as it continues to invest in next-generation talent.
