TCS bloodbath: ₹6,550 crore gone in 15 minutes after layoff announcement

The layoffs have intensified concerns over TCS’s strategy amid global uncertainties, as rising costs and shrinking client budgets pressure IT firms to optimize resources, with analysts viewing the stock dip as part of broader sector challenges

Tata Consultancy Services (TCS) faced a sharp sell-off on Tuesday, July 29, with its shares nosediving in early trade and wiping out approximately ₹6,550 crore in market value within just 15 minutes. This steep drop followed a ₹20,000 crore loss a day earlier, triggered by the company’s announcement to lay off 12,000 employees across global and domestic operations.

The news of large-scale job cuts sent shockwaves through the investor community, leading to heightened volatility and panic-driven selling. As trading opened, TCS’s market capitalization dropped to ₹11.07 lakh crore, underscoring the scale of investor unease.

The layoffs have raised red flags about the company’s strategy amid mounting global uncertainties. With rising operational costs and shrinking IT budgets from key clients, industry players like TCS are under pressure to optimize resources and sustain margins. Analysts believe the stock correction reflects deeper concerns about the IT sector’s near-term prospects, beyond just the TCS development.

The broader sentiment within the tech industry remains cautious, with investors closely watching how TCS and its peers adapt to ongoing macroeconomic challenges. Employees and shareholders are now awaiting the company’s next strategic communication, hoping for signs of stability and a clear roadmap ahead.