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Tata Consultancy Services (TCS) will reduce its workforce by 2%, impacting over 12,000 employees, to become more agile and future-ready, according to CEO K Krithivasan.
TCS to cut 2% of its workforce over next year.
TCS Layoffs 2025: Tata Consultancy Services (TCS), Indian IT giant, will trim 2% of its workforce, affecting roughly over 12,000 employees at middle and senior levels over the next year, as informed by CEO K Krithivasan in an interview with Moneycontrol.
The move aims to make the IT giant more agile and future-ready amid rapid disruptions in technology.
TCS will cut the employees across the globe where the company has a presence through the fiscal year 2026 (April 2025 to March 2026).
When asked the rationale behind the move, TCS CEO K Krithivasan told Moneycontrol that ways of working are changing and there’s a requirement to be future-ready and agile. He added that they have been calling out new technologies like AI and operating model changes.
Krithivasan said that they have been deploying AI at scale and evaluating skills they will be requiring for the future. “We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities,” he added.
Krithivasan argued that they found that there were roles where redeployment hasn’t been effective. “This will impact roughly 2 per cent of our global workforce, primarily at middle and senior levels,” he added in the interview with Moneycontrol.
India’s largest IT services company added 6,071 employees during the April-June 2025 quarter. With this, the total number of TCS employees stood at 6,13,069 as of June 30, 2025. On a net basis, TCS’ headcount increased by 5,090 employees in the first quarter of the fiscal, according to a regulatory filing. Its IT services attrition rate (last twelve-month basis) inched up to 13.8 per cent in Q1 FY26, compared with 13.3 per cent in the previous quarter. The attrition had stood at 13 per cent in the December 2024 quarter.
According to reports, Tata Consultancy Services (TCS) is expected to roll out lower salary hikes this year between 4 per cent and 8 per cent. This hike will be the lowest in the past four years. TCS had rolled out a salary increment of 10.5 per cent in FY22, 6-9 per cent in FY23, and 7-9 per cent in FY24.
The company’s largest IT services company on July 10 reported a 5.98 per cent rise year-on-year (YoY) in its net profit to Rs 12,760 crore for the first quarter ended June 30, 2025 (Q1 FY26). On a quarter-on-quarter (QoQ) basis, the net profit grew 4.38%.
It had reported a net profit of Rs 12,040 crore a year ago and Rs 12,224 crore in the previous quarter.
However, its revenue from operations during April-June 2025 stood at Rs 63,437 crore, which is 1.13 per cent higher as compared with the Rs 62,613 crore reported last year. On a sequential basis, the revenue fell 1.61%.
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