Tata Consultancy Services (TCS) has announced plans to reduce 2% of its workforce in fiscal year 2026, affecting around 12,200 jobs.
Workforce Reduction Plans at TCS
India's leading IT company, TCS, stated its intention to reduce 2% of its workforce, which equates to approximately 12,200 jobs out of over 613,000 employees. The layoffs will primarily target middle and upper management. The company assured that changes would be implemented cautiously to avoid disrupting service delivery.
Leadership's Position on Change
TCS CEO K. Krithivasan stated that the company aims to remain agile and future-ready. He mentioned that TCS has started adopting AI and is adjusting its operational model while identifying future skill sets. "We have invested significantly in our associates regarding how we can provide them career growth and deployment opportunities," he added.
Challenges Facing India's IT Sector
India's IT sector has been grappling with sluggish demand, higher inflation, and uncertainty in U.S. trade policy. According to Krithivasan, the company is facing delays in client decisions, which limits growth. There is also a significant skill gap in new technologies, with a shortfall of qualified professionals in areas like cloud computing and cybersecurity.
The workforce reduction at TCS reflects broader trends within India's IT sector as companies adapt to new market realities and the challenges posed by a shortage of skilled labor.
