Tata Consultancy Services (TCS), India’s largest IT services firm, is reportedly planning to lay off nearly 12,000 employees, according to various industry sources and internal leaks. This development comes amidst shifting business priorities, automation, and macroeconomic pressures. Let’s delve into the details.
What’s Happening at TCS?
Multiple media outlets, including The Morning Context and Economic Times, have cited insider reports indicating that TCS is currently in the process of executing one of its largest workforce optimisation moves in recent history.
While TCS has neither confirmed nor denied these figures publicly, internal sources suggest that performance-based exits and bench optimisation (employees not assigned to any project) are being used to trim the workforce.
Why Is TCS Laying Off Employees?
Several major trends seem to be contributing to this massive realignment:
Declining Global Demand
Clients in the US and Europe—TCS’s biggest markets—are cutting IT budgets due to inflation and economic uncertainty.
Automation and AI Adoption
With TCS investing heavily in AI tools and platforms like ignio (by Digitate), fewer human resources are needed for repetitive and legacy tasks.
Post-Pandemic Overcapacity
TCS, like many tech firms, went on a hiring spree during 2020–2022. Now that demand is stabilizing, there’s a need to resize.
Focus on Cost Efficiency
The company is prioritizing higher-margin service lines and phasing out less profitable operations, which is causing restructuring.
Who Is Being Affected?
- While TCS has not published an official list, sources indicate:
- Mid-level managers and support roles are facing the bulk of the impact.
- Non-billable employees—those not currently assigned to revenue-generating projects—are most vulnerable.
- Freshers in certain geographies have reported receiving delayed joining dates or no project assignments.
What TCS Has Said Regarding TCS Layoffs 2025?
In a response to media inquiries, TCS stated that it “continues to invest in workforce transformation through training and reskilling initiatives.”
A company representative also mentioned:
“TCS remains committed to employee development and will deploy associates into areas of current and future growth.”
This suggests that while layoffs are occurring, the company is trying to manage the transition by internally shifting employees to high-growth units like cybersecurity, cloud, and GenAI.
What Can Tech Professionals Do?
To stay ahead in this volatile environment:
- Upskill in AI, DevOps, cybersecurity, and cloud platforms
- Build a visible digital footprint on GitHub and LinkedIn
- Track hiring trends in startup and global remote work markets
- Stay informed through trusted tech news sources
Final Thoughts
The rumored 12,000 layoffs at TCS serve as a wake-up call for India’s massive IT workforce. While digital transformation is a long-term positive, the short-term consequences can be painful.
Now is the time to invest in future-proof skills and remain agile in the face of constant tech evolution.
We’ll continue to monitor this developing story and provide updates as more details emerge.