The world tech industry is coninuing to layoff employees at an alarming rate with Tata Consultancy Services (TCS) announing its plans to cut its global workforce by 2% by the end of fiscal year 2026. Around 12,000 employees will be affected in this major strategic overhaul aimed at what the company calls future readiness amid evolving technology demands and workplace changes.
TCS Layoffs to Impact Global Workforce Across Roles
The decision, which will affect employees across the globe and roles, is part of a broader move to streamline operations and align skills with emerging demands. TCS CEO K Krithivasan told Moneycontrol that the company is repositioning itself to stay agile in a rapidly changing tech landscape.
“We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing,” Krithivasan said. “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. Still, we find that there are roles where redeployment has not been effective.”
He added that the layoffs, which primarily affect middle and senior-level staff, were among the “toughest decisions” he has made as CEO.
As of June 2025, TCS had a total workforce of 6.13 lakh employees therbey making a 2% reduction will affect about 12,200 jobs.
What is Driving The TCS Layoffs? Company Says Not Directly Due To AI
While the layoffs come in an era of rapid AI adoption, Krithivasan clarified that the move was not directly due to AI replacing human jobs.
“This is not because of AI but to address skills for the future. This is about feasibility in deployment, not because we need less people,” he explained.
To ease the transition for affected employees, TCS will offer severance packages, extended health insurance, salary for the notice period, and outplacement assistance.
Besides Layoffs, TCS Revises Bench Policy
Besides, the layoffs, TCS has revised its internal bench policy. Employees are now required to log at least 225 billable days a year, with no more than 35 days spent on the bench. This change is already being implemented.
“They are removing all the people who are on bench for more than 2 months,” an affected employee told *Moneycontrol*. “First, they are allocating an HR person to each employee to meet in person. On meeting them, they will ask the employee to resign immediately and they will get around 3-month salary in severance pay. If they don’t oblige, they will get terminated by the company and won’t be eligible to get the severance pay also.”
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
