Shares of Tata Consultancy Services (TCS) fell nearly 2 per cent on Monday following the company’s announcement that it will lay off around 12,000 employees from its global workforce this year.
The stock declined 1.76 per cent to close at Rs 3,079.05 on the BSE, after hitting an intraday low of Rs 3,070. On the NSE, it slipped 1.59 per cent to settle at Rs 3,085.80, according to news agency PTI.
TCS, India’s largest IT services firm, said the layoffs, amounting to roughly 2 per cent of its 6.13 lakh-strong workforce as of June 30, 2025, will mainly impact mid- and senior-level roles. Interestingly, the company had added 5,000 employees during the recently concluded June quarter.
The layoffs are part of a larger restructuring effort aimed at transforming TCS into a “future-ready organisation.” The company said it is focusing on technology investments, artificial intelligence deployment, market expansion, and realigning its workforce to meet evolving business needs, as per PTI.
“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” it said, reported news agency PTI.
TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, it added
The move comes at a time when India`s top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making.
The job cuts, set to roll out gradually over FY26, will mainly target mid- to senior-level employees. However, junior staff who have spent extended periods on the “bench” — not assigned to any active projects — may also be affected.
TCS CEO K Krithivasan, in a recent interview with Moneycontrol on Sunday, stated that evolving technologies and changing business models are prompting internal restructuring.
“We’ve consistently highlighted the impact of emerging technologies, especially AI, along with shifts in operating models,” he said. “The way we work is evolving, and we must stay future-ready and agile. We`re deploying AI at scale and assessing the skill sets we`ll need going forward.”
(With PTI inputs)