TCS Layoffs 2025 – 12,000 Jobs Cut | TCS Workforce Reduction

Abhinand PS
Jul 28
3 min read

📊 At-a-Glance: Key Facts About TCS Layoffs 2025

Topic	Details
Total Workforce	~613,069 employees as of June 30, 2025 mint+3India Today+3The Indian Express+3 The Indian Express+9mint+9The Economic Times+9
Planned Layoff Count	Approx. 12,000–12,261 employees (~2% of global workforce) mint Reuters The Economic Times
Affected Seniority Levels	Primarily mid- and senior-level roles, some long-bench junior staff Hindustan Times Moneycontrol
Reason	Redeployment infeasibility and skill mismatch—not simply AI productivity gains Moneycontrol Moneycontrol
Support for Affected Staff	Notice pay, severance, extended insurance, outplacement & counseling The Times of India The Economic Times
Timeline	Cuts expected through FY 2026 (April 2025–March 2026) Reuters Samayam Telugu

🔎 Why Is TCS Cutting Jobs?

1. Changing Demand Outlook

Amid economic uncertainty and cautious client spending, especially due to trade-policy delays, TCS is shifting priorities toward cost-effectiveness and agility Reuters+1The Indian Express+1.

2. AI and Workforce Transformation

Rather than cutting jobs purely because of AI automation, the CEO clarified the layoffs are driven by skill redeployment issues—some roles no longer align with business needs despite extensive reskilling efforts The Indian Express+4Moneycontrol+4Moneycontrol+4.

3. Workforce Realignment Strategy

TCS aims to become a future-ready organisation, focusing more on emerging tech domains, new markets, and AI-led solutions. Roles unable to pivot into new assignments are being phased out India Today+7mint+7mint+7.

✍️ Executive Insight: TCS Leadership Speaks

CEO K. Krithivasan emphasized that this is not about needing fewer people, but about fit. He said layoffs are happening in roles “where deployment is not feasible,” even after internal reskilling programs The Indian Express+7Moneycontrol+7Hindustan Times+7.Meanwhile, ETTech quoted, “This transition is being planned with due care to ensure no impact on client service delivery.” Reuters+3The Economic Times+3The Times of India+3

⚠️ Reactions: Employee Anxiety and Policy Shifts

TCS recently introduced a stricter benching policy, limiting unassigned employees to a maximum of 35 bench days (and mandating 225 billable days per year). This policy led to growing anxiety and social media discussions among staff about job stability The Times of India+2India Today+2Moneycontrol+2.

Some individuals who had resigned from previous jobs after receiving TCS offer letters reported being stranded due to delayed onboarding—raising concerns over hiring transparency deccanherald.com.

🧭 What Affected Employees Are Receiving

TCS has outlined several support initiatives to ease the transition:

Notice Period Compensation
Severance Packages
Extended Health Insurance
Outplacement & Career Counseling
Support even for long-tenured bench staff who can't be redeployed The Economic Times+9The Economic Times+9India Today+9 The Economic Times+7LinkedIn+7The Times of India+7

🧭 How This Fits into Broader IT Layoff Trends

The Indian IT sector—worth over $283 billion—is undergoing transformation under AI disruption and cost pressures. TCS’s move reflects a larger shift toward skills-first models and leaner delivery teams Reuters+1The Times of India+1.

🤝 Advice for Affected Workers & Stakeholders

Monitor internal redeployment options and reskilling programs proactively.
Engage with outplacement counselors early to prepare for job market transition.
Document all communication and compensation agreements for reference.
Use professional networks and platforms to access external job opportunities and support.
Stay updated on evolving industry trends—AI and automation continue shaping career paths.

🙋 Frequently Asked Questions (FAQ)

1. How many jobs is TCS cutting in 2025–26?

Approximately 12,000 to 12,261 employees, representing around 2% of its global workforce of ~613,069 India Today+10mint+10The Times of India+10.

2. Which employees are most affected?

Mainly middle and senior management, along with some entry-level associates who have been on the bench too long Moneycontrol+2Hindustan Times+2Moneycontrol+2.

3. Is TCS cutting jobs because of AI?

No. CEO Krithivasan clarified that the cuts are not due to AI productivity gains, but rather skill mismatch and lack of deployment feasibility across business units The Indian Express+7Moneycontrol+7Moneycontrol+7.

4. What support is being provided to laid‑off employees?

Affected staff will receive severance pay, extended insurance, outplacement assistance, counseling, and job transition support The Times of India+3mint+3The Times of India+3.

5. How long will the layoffs continue?

The workforce reduction is expected to unfold over the FY 2026 financial year (April 2025–March 2026) Indiatimes+2Reuters+2LinkedIn+2.

✅ Final Take: TCS Layoffs Reflect a Strategic Pivot, Not Mass Cutting

TCS's decision to let go of roughly 2% of its workforce—about 12,000 jobs—is the company’s largest layoff yet, aligned with its ambitions for AI-led growth and operational agility. It's not just about cost-cutting; it’s a skills-match restructuring to support future offerings.

Bookmark this article for accurate, up-to-date coverage of this major industry move.