TCS layoffs: Who’s at risk as 12,000 roles face the axe globally

Tata Consultancy Services (TCS) is initiating a significant workforce reduction, affecting 12,000 roles worldwide, in its most extensive layoff to date. This decision is primarily targeting mid- and senior-level employees as the firm adapts to technological disruptions, tighter client budgets, and a revised internal policy regarding employee assignments. By March 2026, TCS plans to reduce approximately 2% of its workforce, which currently stands at 613,000. This marks a notable shift for a company historically viewed as a bastion of job security within the Indian IT landscape. The layoffs are already in progress and are expected to continue throughout the financial year. The majority of impacted roles involve mid- and senior-tier staff, particularly those with more than ten years of experience. The positions facing the greatest risk include non-client-facing managers, project leaders, and specialists in legacy technologies whose expertise no longer aligns with the changing demands of the business. While artificial intelligence is not the only factor influencing this decision, TCS has pointed to a broader strategic realignment. Automation, cloud transitions, and evolving client expectations are reshaping how the company delivers its services. TCS leadership has indicated that efforts were made to reskill and redeploy employees, but not all transitions proved viable. The introduction of a new internal policy has intensified the situation. Employees are now required to achieve a minimum of 225 billable days each year, with a strict limit of 35 days for unassigned time. Exceeding this limit could lead to termination and even affect the issuance of experience letters. Those on the bench must be present in the office and dedicate time to daily upskilling. “This is the toughest decision of my career,” stated CEO K. Krithivasan. He emphasized that the layoffs are not solely driven by AI or cost-cutting measures but are aimed at ensuring the company's agility and relevance in the future. The impact of these layoffs is felt not just in India but across global business units. Severance packages for affected employees include full notice period salaries, extended insurance coverage, career counseling, and reports suggest an additional payout for up to three months in many cases. This restructuring signifies the largest layoff in TCS’s history and mirrors the broader trends within the IT sector, where traditional career stability is giving way to a focus on skill alignment and increased margin pressures.