Tata Consultancy Services (TCS), India’s IT powerhouse, just dropped a workforce bombshell — planning to trim 2% of its global staff, which means over 12,000 jobs could be on the chopping block in FY26. Unsurprisingly, TCS shares took a little tumble, sliding nearly 2% to ₹3,081.20 early Monday on the BSE. But hold on — this isn’t about robots taking over just yet. The company clarified the cuts don’t come from AI efficiencies. In fact, TCS actually added 5,000 employees in Q1, bringing its total headcount to a whopping 6,13,069 as of June 30, 2025. What’s behind the move then? New HR rules, including a minimum of 225 billable days and a max of 35 days on the bench, are pushing TCS to tighten up operations. So, is this smart streamlining or just the new normal in IT?
TCS Faces Rising Attrition, Focuses On Talent Retention
Tata Consultancy Services (TCS) has experienced an increase in employee attrition, which rose to 13.8% over the twelve months ending June 2025, compared to 13.3% in the preceding quarter. The company’s Chief Financial Officer characterized this attrition rate as “concerning” and emphasized the difficulties associated with replacing experienced personnel with new hires. In response, TCS is placing significant emphasis on retaining critical talent, particularly at senior levels. The company is actively implementing retention strategies to maintain workforce stability amid heightened competition and rapidly evolving technological demands. These challenges underscore the urgency of TCS’s workforce management initiatives and provide context for the recent workforce reductions and HR policy reforms.
HR Policy Changes And Operational Impact At TCS
TCS recently updated its HR policy, requiring employees to log at least 225 billable days each year and limiting bench time to 35 days. This move aims to boost productivity and minimize downtime. How do you think this shift will affect employee efficiency? The new policy supports TCS’s plan to reduce its workforce while managing rising attrition. By focusing on billable work and tightening operational controls, TCS aims to make the most of its resources. This strategy shows how TCS adapts to industry challenges and stays competitive in a fast-changing IT world.
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