Tata Consultancy Services (TCS) has announced that it will be letting go of over 12,000 of its employees in the financial year 2025-2026.
With these layoffs, TCS will be laying off 2% of its workforce, which will primarily impact those in middle and senior management positions. The company is deploying artificial intelligence (AI) and other technologies while navigating new markets and contending with an uncertain demand outlook.
“Significant part of this will be in the middle and the senior levels. At the bottom of the pyramid, if somebody has been on the bench for a long period of time, they probably will be impacted. But, it’s primarily in the middle and senior level,” K Krithivasan, the Chief Executive Officer (CEO), at TCS, elaborated during an interview with Moneycontrol.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS further assured in its statement.
In order to accommodate the massive workforce reduction, which will see nearly 12,200 employees leave, TCS has initiated plans for restructuring.
“We may have to let them go because, most importantly, the effectiveness of deployment or feasibility of deployment is not possible,” Krithivasan said while discussing the employees who will soon be laid off. “This is definitely not an easy time for us, not an easy time for the associates, because we have not done this before. It’s a difficult call we have to take. We have been doing this with a lot of compassion and empathy with proper benefits, counselling, outreach and support.”
The CEO has emphasised that the workforce changes within the company are not because of AI, but to accommodate the skills needed in the future.
