TCS to Cut 12,200 Jobs by 2026 Amid AI Push

- Tata Consultancy Services (TCS) announces significant workforce reduction in response to changing industry needs. - Embraces AI shift to address skill gaps in tech sector. On July 27, 2025, Reuters and Business Today reported that Tata Consultancy Services (TCS), India's largest IT services provider, announced plans to reduce its global workforce by 2% by the 2026 fiscal year. The reduction will affect approximately 12,200 employees, mainly from middle and senior management, and is part of the company's strategic pivot to meet evolving industry demands. Newly-appointed CEO K. Krithivasan described the move as a "difficult but necessary" step, stating the company must align with its shift toward AI-driven operations, address skill gaps, and adapt to shifting market conditions. He emphasized that this restructuring is driven by the need for operational feasibility during the transition, rather than a goal to reduce overall headcount. TCS faces industry-wide challenges, including sluggish demand, client pressures for cost reductions, and disruptions to traditional service delivery models. In response, the company has pledged to retrain and redeploy affected employees. To mitigate the impact, TCS will also offer severance packages, extended insurance coverage, and outplacement support. The company underscored its commitment to minimizing disruptions to client services and maintaining operational integrity while continuing to invest in new technologies and expand into emerging markets. As of June 30, 2025, TCS reported a workforce of 613,069 employees in its earnings for the first quarter of fiscal year 2026. Despite the planned job cuts, the company added 6,071 employees during the quarter. However, its attrition rate for IT services rose slightly to 13.8%, compared to 13.3% in the preceding quarter. This workforce reduction represents one of TCS's most significant realignments in recent history, marking a decisive step toward long-term growth and competitiveness in the ever-evolving IT landscape.