TCS to Slash 12,000 Jobs as AI Disrupts IT Jobs – Is Your Role Next?
Tata Consultancy Services (TCS), India’s largest IT services company, is preparing to lay off more than 12,000 employees—around 2% of its global workforce—over the next year. This major shift is part of the company’s push to align with artificial intelligence and evolving tech models transforming the industry.
The bulk of the layoffs will affect mid- and senior-level employees, not entry-level staff, according to CEO K Krithivasan in an interview with Moneycontrol. As of June 2025, TCS employed over 613,000 people globally, making this a significant restructuring move.
Krithivasan said the decision is aimed at making TCS “more agile and future-ready” but acknowledged the company’s internal redeployment strategies haven’t worked well across all functions. He also noted that while AI isn’t the sole reason for the cuts, it is influencing how roles are changing within the organization.
“We’ve been upfront about shifts in technology, including AI and changes to our operating models,” he said. TCS has been scaling up its AI use while evaluating future skill needs. Industry analysts believe that automation is quietly erasing demand for legacy roles like manual testing and redundant backend tasks.
Impacted employees will reportedly receive severance packages, salary for their notice period, extended health benefits, and outplacement help. TCS emphasized that the transition won’t disrupt client services.
The layoffs also come amid employee unrest over the company’s new bench policy. The revised policy limits non-deployment to just 35 days a year and demands a minimum of 225 billable days per employee. Sources say some staffers are being asked to resign after meetings with HR, receiving three months’ severance.
This isn’t just about TCS—India’s IT services sector is going through a broader reset. The top six IT firms added only 3,847 employees in the April-June quarter, down sharply from 13,900 in the previous one.
To add to the tension, TCS has delayed onboarding for over 600 lateral hires who were supposed to start between June and July 2025, according to the All India IT and ITeS Employees’ Union. The Nascent Information Technology Employees Senate has raised concerns with the Union labour minister, calling it a case of “exploitative practices.”
Interestingly, despite the looming job cuts, TCS added 6,071 employees between April and June and reported a net headcount increase of 5,090. Still, this contrast underscores how selective and strategic the layoffs are, driven by shifting priorities and AI-led restructuring.
