IT giant Tata Consultancy Services (TCS) is reportedly planning to lay off around 12,000 employees in FY26 as part of a major restructuring move
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MUMBAI — IT giant Tata Consultancy Services (TCS) is reportedly planning to lay off around 12,000 employees in FY26 as part of a major restructuring move, according to multiple reports on Sunday.
The decision, which affects roughly 2 per cent of its global workforce, is aimed at making the company "future-ready and agile" in the face of rapidly evolving technologies and workplace models, as per the reports.
TCS, which had a total headcount of 6.13 lakh employees as of June 2025, will implement the layoffs across various domains and geographies.
Most of those impacted are expected to be at the middle and senior levels. Reports suggest that the decision is not being driven by cost-cutting or automation, but rather due to challenges in redeploying talent whose current roles no longer align with the company’s evolving skill requirements.
The company is focusing on large-scale deployment of artificial intelligence (AI) and other new technologies, which are reshaping demand across the IT sector.
Although TCS clarified that AI is not directly replacing jobs, analysts believe that roles like manual testing are shrinking, and some senior professionals are struggling to adapt to newer, tech-driven environments.
To support affected employees, the company is offering severance packages, extended insurance, notice period pay, and help with finding alternative job opportunities, according to the reports.
The news comes shortly after TCS announced a net profit of INR 12,760 crore for Q1 FY26 -- reflecting a year-on-year growth of 6 per cent.
Revenue from operations rose 1.3 per cent to INR 63,437 crore during the April-June quarter. The company also declared an interim dividend of INR 11 per share.
CEO K. Krithivasan attributed the company’s steady performance to strong deal closures and growing demand for new services, even as global macroeconomic and geopolitical uncertainties continue to impact client spending.
He also highlighted the company’s ongoing investments in the AI ecosystem, including infrastructure, data platforms, and business applications.
TCS now has over 1.14 lakh employees trained in advanced AI skills, and during the quarter alone, associates spent 15 million hours upgrading themselves in emerging technologies.