TCS To Cut 2% Workforce Over Next Year
ata Consultancy Services (TCS), an Indian IT giant, will trim 2% of its workforce, affecting roughly 12,000 employees at middle and senior levels over the next year.
Tata Consultancy Services (TCS), an Indian IT giant, will trim 2% of its workforce, affecting roughly 12,000 employees at middle and senior levels over the next year, as informed by CEO K Krithivasan in an interview with Moneycontrol. The move aims to make the IT giant more agile and future-ready amid rapid disruptions in technology.
TCS will cut the employees across the globe where the company has a presence through the fiscal year 2026 (April 2025 to March 2026).
When asked the rationale behind the move, Krithivasan said that ways of working are changing and there’s a requirement to be future-ready and agile. He added that they have been calling out new technologies like AI and operating model changes. They have been deploying AI at scale and evaluating skills they will be requiring for the future, he added.
Krithivasan argued that they found that there were roles where redeployment hasn’t been effective. “This will impact roughly 2 percent of our global workforce, primarily at middle and senior levels."
India’s largest IT services company added 6,071 employees during the April-June 2025 quarter. With this, the total number of TCS employees stood at 6,13,069 as of June 30, 2025. On a net basis, TCS’s headcount increased by 5,090 employees in the first quarter of the fiscal year, according to a regulatory filing. Its IT services attrition rate (last twelve-month basis) inched up to 13.8 percent in Q1 FY26, compared with 13.3 percent in the previous quarter.
According to reports, Tata Consultancy Services (TCS) is expected to roll out lower salary hikes this year between 4 percent and 8 percent. This hike will be the lowest in the past four years. TCS had rolled out a salary increment of 10.5 percent in FY22, 6-9 percent in FY23, and 7-9 percent in FY24.
However, its revenue from operations during April-June 2025 stood at Rs 63,437 crore, which is 1.13 percent higher as compared with the Rs 62,613 crore reported last year. On a sequential basis, the revenue fell 1.61%.
What's Your Reaction?
