Indian tech giant TCS to cut workforce by 2%, over 12,000 jobs likely to be impacted
PTC News Desk: Tata Consultancy Services (TCS), India’s largest IT services firm, announced on Sunday that it will reduce its workforce by 2% during the 2026 financial year, with the cuts mainly impacting middle and senior management roles.
While the company is focusing on reskilling and reallocating employees as it expands into new markets, adopts emerging technologies, and integrates AI, approximately 12,200 positions will be eliminated as part of this transition, it stated.
"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company added.
India’s $283 billion IT industry is grappling with clients delaying non-essential tech investments due to subdued demand, ongoing inflation, and uncertainty surrounding U.S. trade policies.
TCS CEO K Krithivasan recently noted that client decision-making and project initiations are facing delays. Meanwhile, Phil Fersht, CEO of IT advisory firm HFS Research, pointed out that the rise of AI is disrupting the sector’s traditionally labour-intensive service model.
- With inputs from agencies
