Why did TCS lose 23,000 staffers? HR breaks silence...

Tata Consultancy Services (TCS) has reported a significant reduction in its workforce, with the headcount falling by over 23,000 employees in the fiscal year 2026. As per the recent Q4 results, the IT services giant now employs 584,519 individuals, marking a decline of 23,460 compared to the previous year. In an interview with the Times of India, TCS's Chief Human Resources Officer, Sudeep Kunnumal, clarified that this decrease is not a direct result of the restructuring process implemented last year. He noted, "Last year, we onboarded 44,000 trainees. We have already made 25,000 campus offers in India and will continue to be among the largest recruiters across universities and the market." Looking ahead, TCS's hiring strategy will be closely linked to the rising demand for IT services. Kunnumal also revealed that the company added 2,356 new employees sequentially during the latest quarter, a mix of both seasoned professionals and recent graduates. He emphasized that the cycle of layoffs has concluded and reiterated that the recent headcount reduction is not solely attributed to last year's restructuring, which had affected about 2% of the workforce. While specific hiring targets for FY27 were not disclosed, TCS has announced annual salary increases for all employees across various grades and roles. Despite some industry speculation that the IT services sector may face irrelevance by 2030, TCS CEO K Krithivasan dismissed these concerns, asserting that businesses will increasingly rely on firms like TCS to maximize the benefits of artificial intelligence. In terms of financial performance, TCS's Q4 results highlighted a 12% increase in net profit, reaching Rs 13,718 crore for the March quarter, alongside a 9.6% rise in revenue to Rs 70,698 crore. This steady recovery indicates TCS's resilience amid the ongoing race in AI development.