TCS CEO and MD K Krithivasan said that the layoffs will not be done in a rush. He explained that the process will involve identifying impacted employees carefully and giving them a fair opportunity to be redeployed. The move is part of a broader plan to adapt to changing technology trends and streamline operations as the company aims to become a “future-ready” organisation.He added that this was “one of the toughest decisions” that he had made as the CEO of TCS.
The job cuts will primarily be targeted towards the middle and senior management roles of the company.
Support for Affected Employees:
TCS has committed to implementing the transition “with due care” to avoid impacting client service delivery. The company will provide affected employees with severance packages, extended insurance coverage, notice period pay, outplacement services, and counseling support. “We will do it in a very, very compassionate way,” Krithivasan assured.
The announcement has sent ripples through India’s technology sector, with industry analysts expecting other major IT firms may follow TCS’s lead in workforce restructuring as companies increasingly turn to automation and AI-driven solutions
Global Workforce Snapshot
- Total Employees: 677,000 (as of July 2025)
- Presence: 55 countries, 180+ delivery centers
- Departments: IT, HR, Finance, Marketing, Sales, Legal, Consulting, Analytics
Industry Pressure :The restructuring reflects broader challenges facing India’s $283 billion IT sector, including client reluctance to spend on non-essential technology services amid global economic uncertainty and inflation. TCS reported a 6% year-on-year growth in net profit to ₹12,760 crore for Q1 FY26, though revenue in constant currency declined 3.1%