TCS to Lay Off 12,000+ Employees in 2025 Amid Strategic Workforce Realignment

India’s largest IT services firm

has announced it will lay off around 2% of its global workforce — approximately 12,261 employees — over the course of FY26. As of June 30, 2025, TCS had a total workforce of 6,13,069, with a net addition of 5,000 in the April–June quarter. However, the company now plans to realign its talent model, focusing especially on middle and senior-level roles. “TCS is on a journey to become a Future-Ready organisation... We are investing in AI, next-gen tech, and new markets, which necessitates workforce restructuring,” said the company in an official statement. TCS emphasized that the move is part of a larger transformation strategy driven by AI deployment, market expansion, and operational agility. Impacted employees will receive support through benefits, counselling, and outplacement assistance. Sectoral Context: Tech Layoffs on the Rise This development comes amid continued macroeconomic headwinds and geopolitical uncertainties, which have slowed down discretionary tech spending globally. K. Krithivasan noted a "demand contraction" and cautioned against expecting double-digit revenue growth in FY26 due to prolonged client decision delays. Global Snapshot TCS’s move mirrors a broader trend in the global tech industry: Microsoft has laid off 15,000+ employees in 2025 (~7% of workforce) Total tech layoffs in 2025 so far: 80,000+ employees In 2024: Over 1.5 lakh layoffs across 551 tech firms Microsoft CEO Satya Nadella called the trend “the enigma of success in an industry with no franchise value”, reflecting the rapidly evolving impact of AI on workforce structures. Bottom Line TCS’s workforce restructuring underscores the AI-driven shift in the global IT landscape, where cost optimization, skill transformation, and agility are becoming non-negotiable. While concerning in the short-term, this could pave the way for a leaner, more future-focused tech workforce. This Can Lead Some Panic Selling Across IT Stocks