TCS Announces Significant Workforce Reduction

Tata Consultancy Services (TCS), India’s leading IT services provider, has announced a strategic decision to reduce its workforce by 12,000 jobs, representing a 2% cut in its total employee base. This move is set to take place during the company’s 2026 financial year and will primarily impact middle and senior management positions. The decision comes as TCS navigates a rapidly changing technological landscape and seeks to align its workforce with new market demands and technological advancements.

Focus on Retraining and Redeployment

In an effort to mitigate the impact of these job cuts, TCS is focusing on retraining and redeploying its staff. The company is investing in new technologies, including artificial intelligence, to enhance its service offerings and enter new markets. This strategic shift aims to ensure that TCS remains competitive in the global IT sector while maintaining high standards of service delivery to its clients.

Challenges Facing the Indian IT Sector

The decision by TCS reflects broader challenges facing India’s $283 billion IT industry. Companies are grappling with reduced technology spending by clients due to weak demand, ongoing inflationary pressures, and uncertainties surrounding US trade policies. These factors have led to delays in client decision-making and project initiations, as highlighted by TCS Chief Executive K Krithivasan.

Commitment to Client Service

Despite the planned workforce reduction, TCS has assured stakeholders that service delivery will not be compromised. The company is carefully planning this transition to ensure that client engagements remain unaffected. This commitment underscores TCS’s dedication to maintaining its reputation as a reliable partner in the IT services sector.