TCS Slashes 12,000 Jobs: What’s Behind the Massive Layoffs?

See All Articles

5 Key Takeaways

• TCS is laying off 12,000 employees globally, mainly from mid and senior levels, affecting about 2% of its workforce.
• The layoffs are attributed to skill mismatches and workforce realignment, not due to AI-driven productivity gains.
• Managers have been asked to suggest names for layoffs, with a significant portion coming from benched employees.
• The IT Ministry is monitoring the situation closely and is in contact with the Tata Group to understand the reasons behind the move.
• TCS shares have declined following the layoff announcement, reflecting investor concerns.

TCS Layoffs: What You Need to Know About the 12,000 Job Cuts
India’s largest IT company, Tata Consultancy Services (TCS), has announced a major round of layoffs that will affect over 12,000 employees worldwide. If you’re wondering what’s happening, why it’s happening, and who will be affected, here’s a simple breakdown of the situation.
What’s Happening?
TCS is planning to let go of about 12,261 employees, which is roughly 2% of its total workforce. As of June 30, 2025, TCS had over 6 lakh (613,069) employees. The layoffs will mostly impact people in mid-level and senior positions, rather than freshers or junior staff.
Why is TCS Laying Off Employees?
According to TCS, these job cuts are part of a bigger plan to make the company “future-ready.” The company wants to focus more on new technologies, artificial intelligence (AI), and expanding into new markets. To do this, they need to realign their workforce—meaning they want to make sure they have the right people with the right skills in the right roles.
TCS says that the layoffs are not because AI is replacing jobs, but because there is a “skill mismatch.” In other words, some employees don’t have the skills that TCS now needs, or the company can’t find suitable projects for them. CEO K Krithivasan has said that this is not about AI making people redundant, but about making sure the company has the right talent for its future plans.
How Are the Layoffs Being Decided?
The process has already started, with hundreds of employees being asked to leave in July. Most of those affected are between the ages of 24 and 55, and are based in cities like Bengaluru, as well as international locations like London and Princeton.
Managers and business heads at TCS have been asked to suggest names of employees who could be let go. About one-third of those being laid off are from the “bench”—employees who are not currently assigned to any project. The rest will be selected based on the lists provided by managers.
What’s the Government Doing?
The Indian IT Ministry is keeping a close watch on the situation. They are in touch with the Tata Group to understand the reasons behind the layoffs and to make sure everything is being handled properly. Some IT unions have called the job cuts “unethical” and have written to the government, asking for intervention.
How Are the Markets Reacting?
TCS’s share price has taken a hit since the news broke, falling by about 2% in a single day. Investors are worried about what these layoffs mean for the company’s future.
What’s Next?
TCS says it will handle the layoffs “in a very, very compassionate way.” The company is also running programs to help employees reskill and find new roles, either within TCS or elsewhere.
This is a developing story, and more updates are expected in the coming weeks. If you work in IT or know someone who does, it’s a good time to keep your skills updated and stay informed about changes in the industry.

Read more