Tata Consultancy Services (TCS), a leading IT services firm, is planning to reduce its workforce by about 2% – impacting over 12,000 employees – in the financial year 2025-26 as part of a strategic shift towards new technologies and AI.
A Strategic Workforce Shift
The job cuts, totaling around 12,200 positions, are expected to primarily affect employees at the middle and senior management levels. This move comes as TCS focuses on retraining and redeploying its staff.
The company is entering new markets, investing heavily in emerging technologies, and integrating artificial intelligence (AI) across its operations. TCS has assured that this transition is being managed carefully to ensure no disruption to client services.
Investing in Future Skills
Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO) at TCS, recently shared insights into the company’s workforce. He noted that net attrition during the first quarter involved over 5,000 employees.
TCS remains committed to honoring all job offers made and will adjust lateral hiring based on future demand. The company is significantly investing in its business to keep pace with evolving technology needs and remain relevant to customers.
Associates at TCS have dedicated 15 million hours to building expertise in emerging technologies. This effort has resulted in 114,000 employees now possessing higher-order AI skills, preparing them to lead client transformations.
AI and Efficiency Drive Decisions
TCS CEO K Krithivasan highlighted that enterprises are currently prioritizing cost optimization, vendor consolidation, and efficiency-led technology transformation. Discretionary spending remains under tight scrutiny.
Despite this, companies are strongly focused on scaling AI adoption across various applications, workflows, and data performance. TCS itself is emphasizing operational excellence and innovation, leveraging data and AI for improved performance.
- TCS plans to cut approximately 2% of its workforce (over 12,000 jobs) in FY26.
- The reductions are mainly targeting middle and senior management roles.
- This is part of a larger strategic shift towards new technologies and AI adoption.
- TCS is retraining and redeploying staff, investing heavily in future-ready skills.
This workforce adjustment underscores TCS’s commitment to adapting to the rapidly changing technological landscape, with a strong focus on AI and operational efficiency for future growth.
Tata Consultancy Services (TCS), a leading IT services firm, is planning to reduce its workforce by about 2% – impacting over 12,000 employees – in the financial year 2025-26 as part of a strategic shift towards new technologies and AI.
A Strategic Workforce Shift
The job cuts, totaling around 12,200 positions, are expected to primarily affect employees at the middle and senior management levels. This move comes as TCS focuses on retraining and redeploying its staff.
The company is entering new markets, investing heavily in emerging technologies, and integrating artificial intelligence (AI) across its operations. TCS has assured that this transition is being managed carefully to ensure no disruption to client services.
Investing in Future Skills
Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO) at TCS, recently shared insights into the company’s workforce. He noted that net attrition during the first quarter involved over 5,000 employees.
TCS remains committed to honoring all job offers made and will adjust lateral hiring based on future demand. The company is significantly investing in its business to keep pace with evolving technology needs and remain relevant to customers.
Associates at TCS have dedicated 15 million hours to building expertise in emerging technologies. This effort has resulted in 114,000 employees now possessing higher-order AI skills, preparing them to lead client transformations.
AI and Efficiency Drive Decisions
TCS CEO K Krithivasan highlighted that enterprises are currently prioritizing cost optimization, vendor consolidation, and efficiency-led technology transformation. Discretionary spending remains under tight scrutiny.
Despite this, companies are strongly focused on scaling AI adoption across various applications, workflows, and data performance. TCS itself is emphasizing operational excellence and innovation, leveraging data and AI for improved performance.
- TCS plans to cut approximately 2% of its workforce (over 12,000 jobs) in FY26.
- The reductions are mainly targeting middle and senior management roles.
- This is part of a larger strategic shift towards new technologies and AI adoption.
- TCS is retraining and redeploying staff, investing heavily in future-ready skills.
This workforce adjustment underscores TCS’s commitment to adapting to the rapidly changing technological landscape, with a strong focus on AI and operational efficiency for future growth.
