TCS to lay off over 12,000 employees amid skill gap and tech shift

Tata Consultancy Services (TCS), India’s biggest IT company, will cut about 12,000 jobs—around 2% of its staff—in the 2026 financial year. The layoffs will mostly impact middle and senior managers.

The company said it is retraining and moving staff to new roles as it expands into new markets, adopts new technology, and uses AI. However, around 12,200 jobs will still be cut as part of this process.

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The company added, “This transition is being planned with due care to ensure there is no impact on service delivery to our clients. ”

TCS CEO K Krithivasan said that changes in technology and business operations are leading to internal adjustments within the company.

“We have been calling out new technologies, particularly AI and operating model changes. The ways of working are changing. We need to be future-ready and agile. We have been deploying AI at scale and evaluating skills we will be requiring for the future,” Krithivasan added.

Krithivasan said that even though TCS has heavily invested in employee development and career growth, some roles could not be effectively reassigned. As a result, around 2% of the global workforce—mainly in middle and senior positions—will be impacted. He called it one of the toughest decisions he's had to make as CEO.

When asked if the layoffs were due to AI or broader market factors, he clarified that it wasn’t about needing fewer people because of AI, but about having the right skills for future roles.

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