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Key Points

TCS is reportedly planning to lay off 12,000 employees in FY26 as part of a restructuring to adapt to AI and tech shifts. The layoffs, impacting middle and senior roles, stem from challenges in redeploying talent for new skill demands. The company is offering severance packages and job transition support to affected employees. Despite steady Q1 profits, TCS is prioritizing AI investments and upskilling its workforce for future readiness.

Key Points: TCS Plans 12000 Layoffs in FY26 Amid Tech Restructuring

  • TCS layoffs affect 2% of global workforce
  • Middle and senior roles most impacted
  • AI and tech shifts drive restructuring
  • Severance packages and job support offered
2 min read

TCS likely to lay off 12,000 employees in FY26 amid tech shift, restructuring

TCS to lay off 12000 employees in FY26 as part of restructuring to align with AI and tech-driven demands.

"The decision is not driven by cost-cutting but by challenges in redeploying talent for evolving skills. – Reports"

Mumbai, July 27

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 Rs 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 Rs 63,437 crore during the April-June quarter. The company also declared an interim dividend of Rs 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.

- IANS

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Reader Comments

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Shreya B
This is the harsh reality of IT sector today. Either upskill or get left behind. I work in tech and see how AI is changing everything. TCS is at least offering good severance packages unlike some startups that just fire overnight. Still, tough times ahead for many professionals.
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Aman W
Making record profits but still cutting jobs? Doesn't sit right with me. TCS should find ways to retain employees through proper training programs. Many of these people might be sole breadwinners for their families. Corporate India needs more responsibility towards employees.
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Priya S
My uncle works at TCS and is worried now. He's been there 15 years but his skills are outdated. The company should have started reskilling programs much earlier instead of sudden layoffs. Hope the job market absorbs these experienced professionals 🤞
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Karthik V
As someone who got laid off last year from another IT firm, I can say the job market is brutal right now. TCS package seems decent but finding new jobs at senior levels is very tough. Younger professionals should take this as a wake-up call to keep learning new tech.
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Nisha Z
The writing was on the wall when they started massive AI training programs. While change is inevitable, companies must balance profits with employee welfare. 2% may seem small but that's 12,000 dreams affected. Hope the government takes note of these mass layoffs in IT sector.

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