Winning Bizness Desk
Mumbai. Tata Consultancy Services (TCS), India’s largest IT company, has announced a major workforce reduction in the upcoming financial year 2026. The company plans to cut over 12,000 jobs, which is about 2 percent of its global workforce. This decision will affect employees across countries and departments where TCS operates. The layoff process will take place between April 2025 and March 2026.
Workforce strength crosses 6.13 lakh mark
As of the April–June 2025 quarter, TCS had a total of 6,13,069 employees, as per company data. During this period, 6,071 new employees were hired. Despite the layoffs planned for the coming year, the company has continued onboarding new talent, especially in areas aligned with emerging technologies and future-ready roles.
CEO calls it one of the toughest calls
TCS CEO K Krithivasan described the decision as one of the most difficult of his career. He explained that the company is focusing on newer technologies like artificial intelligence and evolving operating models. The way work is delivered is changing rapidly, and TCS wants to ensure that it stays ahead. While TCS has invested in reskilling employees, some roles are no longer viable and cannot be redeployed effectively.
Not AI-driven, but skill-oriented restructuring
According to the CEO, the layoffs are not driven by AI replacing jobs but by the need to upgrade skillsets for the future. He clarified that TCS will offer support to affected employees, including severance packages, extended insurance benefits, and outplacement opportunities. The goal is to restructure for long-term strength, not merely to cut costs or headcount.
New bench policy added pressure
TCS recently introduced a revised bench policy, effective from June 12, 2025. Employees must now log at least 225 billable days annually, meaning they need to contribute to revenue-generating projects for most of the year. The allowed bench time, which is the period an employee can stay without an active project, has also been capped at 35 days. This change has increased job uncertainty among non-billable employees.
Profit up by 6 percent despite layoffs
In the April–June 2025 quarter, TCS reported a net profit of ₹12,760 crore, marking a 6 percent growth compared to ₹12,040 crore in the same quarter last year. However, revenue from operations slightly dipped by 1.31 percent to ₹63,437 crore. Despite a strong financial performance, the company is restructuring to adapt to changing business needs and client expectations.
Pointers to understand the full story:
- TCS will lay off over 12,000 employees in FY26
- Layoffs will impact 2 percent of global workforce
- CEO says decision driven by skill gaps, not AI
- Company had over 6.13 lakh employees in June 2025
- New bench policy requires 225 billable workdays
- Affected staff to receive support and severance benefits
- TCS posted 6% profit growth in the latest quarter
