Bad news for TCS employees, Ratan Tata's company to lay off these many workers: 'One of the toughest decisions'

Tata Consultancy Services (TCS) has decided to lay off 2 percent of its workforce (more than 12,000 employees) during the ongoing financial year, according to a report by Moneycontrol. The move will impact staff across countries and departments as job cuts will continue through the fiscal year (up to March 2026). The company has taken the decision to become more agile and future-ready amid drastic disruptions in the tech industry, its chief executive officer K Krithivasan said.

What did K Krithivasan say?
K Krithivasan, the CEO of TCS, told Moneycontrol in an interview: "We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile. We have been deploying AI at scale and evaluating skills we will be requiring for the future." He added, "We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities. Still, we find that there are roles where redeployment has not been effective. This will impact roughly 2 percent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest decisions I have had to take as CEO."

What will laid-off employees get?
TCS has an employee count of 6,13,000 as of June this year, meaning a 2 percent cut will impact roughly 12,200 workers. Krithivasan said the company is making the process as compassionate as possible. Exiting employees will receive notice period pay and an additional severance package. TCS will also look to extend insurance benefits and offer outplacement opportunities for the affected employees, as per the report. The decision comes weeks after TCS altered its bench policy, requiring employees to maintain at least 225 billable days per year and limit time on the bench to under 35 days.