Tata Consultancy Services, the biggest provider of IT services in India, announced on 27 July that it will cut 2% of its personnel in its 2026 fiscal year, mostly affecting middle and senior management.
About 12,200 positions will be lost as a result of the company’s retraining and redeploying of employees as it enters new markets, makes investments in new technologies, and uses AI. According to a statement from TCS, the action is a component of the company’s larger plan to become a “future-ready organisation” that emphasises personnel restructuring, market expansion, AI deployment, and technological expenditures.
The business also stated that this change is being carefully planned to guarantee that our clients’ service delivery won’t be impacted.
Why Is TCS Laying Off Employees?
India’s $283 billion IT industry has had to deal with customers delaying non-essential technology purchases due to low demand, ongoing inflation, and lingering trade policy uncertainties from the United States. K. Krithivasan, the CEO of TCS, stated this month that customer decision-making and project start times were delayed. As of June 30, 2025, TCS employed 613,069 people. In the most recent quarter, which ended in April and June, it added 5,000 new staff.
TCS Financials Amid Layoffs: Q1 2025 Results
On July 10, TCS announced that its net profit for the June quarter had increased by 6% to INR 12,760 crore. In the same period last year, the Tata group company reported a net profit of INR 12,040 crore. The company’s sales decreased 3% when considering constant currency, although it increased 1.3% to INR 63,437 crore from INR 62,613 crore in the same time last year. According to a corporate statement, its operating profit margin increased by 0.30% on a quarterly basis to 24.5% during the April–June period.
TCS Responds to Onboarding Delay Concerns
The largest IT services provider in India, Tata Consultancy Services (TCS), has stated that it is still dedicated to onboarding all experts who have been offered positions, despite several reports that experienced hires in various cities have been facing extended delays in their joining dates. TCS can confirm that, as usual, TCS is committed to honouring all offers we have made, whether they are to experienced professionals or freshmen, according to the company’s statement provided to People Matters.
The company will onboard all of the people who have gotten an offer from TCS. The joining dates are chosen based on company need, and occasionally they are modified to accommodate our demands. In these situations, TCS stays in constant communication with each candidate and hopes they will soon join our team.
The clarification comes as professionals who claim to have resigned from their prior positions to join TCS, citing official offer letters and specific start dates, are becoming increasingly concerned. Many of these professionals were hired for lateral positions in Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi. Their experience ranged from two to eighteen years.
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