TCS to Cut 2% Workforce by 2026, Affecting 12,000 Employees – Confirms CEO
In a significant development from the Indian IT sector, Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to reduce its workforce by 2% over the next 12 months. This equates to around 12,000 jobs being affected by 2026.
The announcement came directly from the TCS CEO during a recent quarterly update, where he emphasized that this workforce optimization is part of a strategic realignment to improve operational efficiency and adapt to evolving global business demands.
Why Is TCS Cutting Jobs?
The CEO stated that the decision to reduce the workforce is not a reflection of the company’s financial instability but a move driven by:
- Increased automation in repetitive tasks
- Shifting project models requiring fewer resources
- Focus on high-margin service areas
- Global economic uncertainties
With clients across North America and Europe tightening their tech budgets, IT service companies like TCS are focusing more on cost efficiency, upskilling existing talent, and automating lower-end roles.
What Will Happen to Affected Employees?
According to internal sources, the layoffs are expected to happen gradually across departments. The company has also hinted at offering:
- Internal re-skilling programs
- Voluntary retirement options (in select cases)
- Outplacement support in niche tech sectors
However, there is concern among middle and entry-level professionals who are most likely to face the brunt of the restructuring.
TCS Hiring Outlook: Is This the End of Hiring?
Interestingly, TCS has clarified that while it is reducing its workforce in some departments, it will continue hiring in AI, cloud, and cybersecurity domains, which are core to its future vision.
The company aims to:
- Hire fresh graduates in key technical domains
- Invest in training programs aligned with digital transformation
- Create AI-driven project roles for future client needs
Expert Opinions on the TCS Layoffs
Industry analysts believe that this move by TCS might trigger a wave of restructuring across Indian IT majors, especially if economic uncertainties persist.
Some experts have also noted that the company’s strategy reflects a global shift towards leaner IT models, where fewer employees manage smarter systems using AI and automation.
Final Thoughts on TCS to Cut 2% Workforce by 2026
With a workforce of over 600,000 employees globally, a 2% cut may appear marginal, but its ripple effects on job sentiment in the IT industry cannot be ignored. The next few quarters will be crucial as TCS navigates this shift in workforce structure while balancing innovation, delivery, and profitability.
FAQs on TCS to Cut 2% Workforce by 2026
Q1. How many employees is TCS planning to lay off?
A1. Around 12,000 employees, which is 2% of its global workforce.
Q2. When will these layoffs happen?
A2. Over the course of the next 12 months, possibly completing by mid-2026.
Q3. Which departments will be affected?
A3. Mostly roles impacted by automation or low utilization—specific departments have not been officially disclosed.
Q4. Is TCS also hiring in 2025-2026?
A4. Yes, the company plans to hire in AI, cloud computing, and cybersecurity roles.
Q5. Will freshers be impacted?
A5. Freshers are unlikely to be affected directly; in fact, TCS is still onboarding new graduates for digital skill roles.
