TCS to cut 12,000 jobs globally amid AI shift and economic pressures

TCS will gradually lay off 12,000 mid- and senior-level employees this year as part of its strategy to become a future-ready organisation and stay competitive amid evolving business demands driven by AI and automation

Tata Consultancy Services (TCS), India’s leading IT services firm, has announced plans to reduce its global workforce by approximately 2%, impacting around 12,000 employees, as part of its efforts to adapt to rapid technological shifts and macroeconomic headwinds.

The downsizing, expected to unfold gradually over the year, will largely affect mid-level and senior professionals. TCS, which currently employs over 613,000 people worldwide, emphasized that the move is part of its transformation into a “future-ready organisation” and is aimed at ensuring long-term competitiveness in a changing business environment shaped by AI and automation.

“This decision is being made with care and consideration,” the company said in a statement. “The transition will not affect client service delivery, and those impacted will receive full support including severance pay, extended insurance, career transition services, and counselling.”

Workforce realignment amid AI disruption

The development follows reports of growing internal pressure over the company’s revised bench policy, which now caps non-project days at 35 per year and mandates at least 225 billable days annually. TCS has also recently deferred onboarding of about 600 experienced lateral hires.

While the company maintained that the financial impact of the layoffs is limited and operations remain unaffected, the move underscores the broader recalibration taking place across the global tech sector.

According to data from Layoffs.fyi, over 80,000 tech jobs have been cut across 169 companies in 2025 so far. Among them, Microsoft has reduced its headcount by over 15,000, citing the need to remain agile in a fast-evolving landscape. CEO Satya Nadella, in a recent note to employees, said, “Progress isn’t linear. It’s dynamic and sometimes dissonant—but it opens the door to deeper impact.”

Last year, the tech industry saw more than 150,000 job losses amid concerns around economic slowdown and the disruptive impact of AI on job roles and workforce planning.

TCS’s decision reflects the changing face of the global IT services sector, where efficiency, automation, and strategic reskilling are becoming central to operations. As the firm moves forward, it faces the dual challenge of streamlining talent while continuing to drive innovation for clients worldwide.