Tata Consultancy Services (TCS), the global IT services giant, is reportedly planning to lay off approximately 12,000 employees in FY26 as part of a significant restructuring initiative, according to several media reports released on Sunday.
This move, which impacts around 2% of TCS’s global workforce, is aimed at making the company more “future-ready and agile” in response to fast-evolving technologies and changing workplace models.
As of June 2025, TCS employed a total of 6.13 lakh individuals. The planned layoffs will span across various functions and geographies. The majority of affected employees are expected to be at mid and senior levels. Reports indicate that this restructuring is not driven by cost-cutting or automation, but by challenges in redeploying talent whose current roles no longer align with the company’s evolving business needs and skills demand.
TCS is increasingly focusing on the large-scale implementation of artificial intelligence (AI) and emerging technologies that are redefining the IT services landscape. While the company clarified that AI is not directly replacing jobs, industry analysts note that tasks like manual testing are becoming obsolete. Additionally, some senior professionals are finding it difficult to transition into newer, tech-driven roles.
To support impacted employees, TCS is offering severance benefits, extended insurance, notice period compensation, and assistance with job placement, according to the reports.
The announcement coincides with the company reporting a strong financial performance. TCS recorded a net profit of ₹12,760 crore for Q1 FY26, marking a 6% year-over-year growth. Operating revenue for the April-June quarter rose by 1.3% to ₹63,437 crore, and the company also declared an interim dividend of ₹11 per share.
CEO K. Krithivasan credited the solid performance to robust deal wins and rising demand for digital services, despite global economic headwinds and client spending uncertainties. He also emphasized the company’s continuous investments in AI infrastructure, data platforms, and business applications.
Currently, TCS has over 1.14 lakh employees trained in advanced AI skills. During the quarter, its associates collectively invested 15 million hours in upskilling across emerging technologies—highlighting the company’s commitment to building a future-ready workforce.
Recent Random Post:
ఎయిర్బస్ A320 విమానాల్లో సోలార్ రేడియేషన్ సమస్య | Airbus A320 Jets Face Solar Radiation Issue
ఎయిర్బస్ A320 విమానాల్లో సోలార్ రేడియేషన్ సమస్య | Airbus A320 Jets Face Solar Radiatiolar Ron Issue
