TCS Layoffs 2025: India’s Largest IT Giant to Cut 12,000 Jobs Amid Tech Disruption
Tata Consultancy Services (TCS), India’s leading IT services company, is set to lay off approximately 12,200 employees—roughly 2% of its global workforce—over fiscal year 2026 (April 2025 to March 2026). This strategic move is aimed at making the organization “future-ready and agile” as it adapts to rapid advances in artificial intelligence (AI) and evolving technology demands
Key Facts at a Glance
What’s Behind the TCS Layoffs?
- AI and Automation: TCS is leveraging AI at scale, transforming processes and reducing demand for some roles, especially those in manual testing and middle management.
- Skill Mismatch: The company cites skill gaps and redeployment challenges as primary reasons. Despite heavy investments in employee upskilling, TCS found that not all roles could be matched to new opportunities.
- Global Economic Uncertainty: The broader tech industry slowdown and changing client needs have also played a role in driving the cuts.
- Industry Trend: Many major IT firms are undergoing similar transitions, aligning with automation and changing digital skills.
Employee Impact: Benefits and Support
TCS promises to handle the transition with care:
- Compensation: Payments for the notice period plus additional severance packages.
- Benefits: Extension of health insurance after exit and outplacement support.
- Focus: Majority affected are in middle and senior roles, rather than freshers or junior employees.
TCS’s New Bench Policy: Stricter Utilization Rules
Adding to employee anxiety, TCS introduced a new bench policy effective June 12, 2025, capping the unallocated (bench) period at just 35 days per year.
- Employee Reactions: The policy sparked concern about job security and mental health. IT unions have criticized it as “coercive” and “punishing,” while TCS insists it’s about better workforce planning and agility.
- Industry Implication: Experts believe stricter bench management could set a precedent across India’s IT sector, especially as AI automates more routine roles.
What’s Next for TCS and the IT Sector?
This development highlights a new era in the Indian IT industry, where AI-driven transformation is reshaping job profiles and workforce policies. As TCS leads the sector, other IT giants may follow with similar realignments in response to skill demands and automation.
For employees, upskilling and staying relevant with emerging tech skills will be more critical than ever. For businesses, managing digital transition with compassion and strategic planning remains a key challenge.