NEW DELHI— Shares of Tata Consultancy Services (TCS) fell on Monday after the IT major announced plans to lay off approximately 12,200 employees during the 2025–26 fiscal year.
The stock declined as much as 1.7% to hit an intraday low of ₹3,081 on the BSE. The move comes after TCS, India’s largest IT services exporter, said it would reduce about 2% of its global workforce—roughly 6.13 lakh employees as of June 2025.
The layoffs will span various departments and regions but are expected to affect mostly middle and senior-level staff. In a statement, TCS CEO K. Krithivasan acknowledged the gravity of the decision, calling it “one of the toughest” he has had to make. He explained that the restructuring is aimed at making the organization more agile and future-ready amid rapid shifts in technology and workplace dynamics.
TCS emphasized that the move is not driven by cost-cutting or automation but rather by the challenge of redeploying talent whose current roles no longer align with the company’s evolving skill needs. The company is aggressively investing in emerging technologies such as artificial intelligence (AI), which are reshaping service delivery models across the industry.
“As demand shifts toward AI and other advanced technologies, certain roles—such as manual testing—are declining in relevance, and some senior professionals are struggling to transition into the new digital environment,” said analysts tracking the sector.
To support affected employees, TCS is offering severance packages, extended insurance coverage, notice period pay, and job placement assistance.
Despite the restructuring, TCS reported solid financials for the first quarter of FY26. Net profit rose 6% year-over-year to ₹12,760 crore, while revenue from operations increased 1.3% to ₹63,437 crore. The company also announced an interim dividend of ₹11 per share. (Source: IANS)
