Tata Consultancy Services (TCS) informed its decision to reduce 2% of its workforce in its 2026 financial year, Reuters reported.
As per the company, the decision will primarily affect the middle and senior management of the IT services provider and is expected to eliminate more than 12,000 jobs from the company's workforce of more than 613,000. This decision also comes in the backdrop of TCS deploying AI and other technologies while entering new markets and contending with an uncertain demand outlook.
"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the official statement of the company mentioned.
In an interview with Moneycontrol, TCS CEO K Krithivasan said the decision to lay off employees was one of the toughest calls to be taken as a CEO.
“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. We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities. Still, we find that there are roles where redeployment has not been effective. This will impact roughly 2 percent of our global workforce, primarily at middle and senior levels. It has not been an easy decision and one of the toughest decisions I have had to take as CEO,” said K Krithivasan.
For the impacted employees, apart from notice period pay and an added severance package, the company will also look to extend insurance benefits and offer outplacement opportunities, media reported.
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