Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to lay off approximately 12,000 employees—roughly 2% of its global workforce—over the course of FY26. The move is part of a sweeping internal restructuring aimed at making the company “future-ready” in the face of rapid technological shifts, including large-scale AI deployment.
While TCS CEO K Krithivasan insists the layoffs are not directly caused by AI productivity gains, the company’s statement highlights a strategic pivot toward automation, agile delivery models, and next-gen infrastructure. The layoffs will primarily affect mid- and senior-level staff, especially those whose roles no longer align with evolving business needs or who face challenges in adapting to tech-heavy environments.
TCS has trained over 550,000 employees in basic AI skills and 100,000 in advanced capabilities, but redeployment has proven difficult for some. The company promises a compassionate exit process, including severance packages, extended insurance, and outplacement support.
This marks one of the largest workforce reductions in TCS history and signals a broader shift in the IT industry—where adaptability and tech fluency are becoming non-negotiable. The announcement has sparked intense debate across social media, with many questioning the future of job security in India’s IT sector.
Editor’s Note
This story reflects a pivotal moment in India’s IT landscape. As AI reshapes enterprise operations, legacy roles are being redefined—and sometimes eliminated. IT-INDIA.com will continue tracking how automation, skill gaps, and strategic pivots impact professionals across the sector.
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