What prompted TCS CEO to announce job cuts affecting 12,200 employees?
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Synopsis
In a significant move, TCS plans to cut 12,200 jobs to adapt to the evolving IT landscape. CEO K Krithivasan explains the necessity of embracing AI and agility for future success. This decision reflects the challenges and opportunities within the industry, making it a pivotal moment for TCS.
Key Takeaways
- TCS is cutting 12,200 jobs to adapt to changing industry demands.
- The move reflects the need for agility and AI deployment.
- Over 114,000 employees have received advanced AI training.
- Despite cuts, TCS reported strong financial performance.
- The company is focusing on upskilling its workforce amid technological advancements.
Mumbai, July 27 (NationPress) Tata Consultancy Services (TCS), recognized as India's premier IT services firm, has revealed plans to reduce its global workforce by 2 percent during the financial year 2026, which runs from April 2025 to March 2026. This decision will impact approximately 12,200 employees, primarily in middle and senior management positions.
TCS's CEO, K Krithivasan, characterized this choice as “one of the most challenging” he has faced.
“The landscape of work is evolving. We must be future-ready and adaptable,” he emphasized, noting that the company is implementing artificial intelligence (AI) extensively and reassessing the skills necessary for the future.
The job reductions occur as TCS prioritizes the integration of AI and other cutting-edge technologies within its operations.
These adjustments are redefining the global demand for IT services. The company is also navigating an unpredictable market as it seeks to expand into new territories.
As of June 2025, TCS boasted a total workforce of 613,000 employees globally. With rapid technological advancements, the company is channeling resources towards large-scale AI implementation and workforce upskilling.
Over 114,000 employees have already received training in advanced AI competencies. In just the April-June quarter, employees dedicated 15 million hours to learning about innovative and emerging technologies.
This announcement follows TCS's financial report for the first quarter (Q1) of FY26.
The company disclosed a net profit of Rs 12,760 crore, reflecting a 6 percent increase compared to the same period last year, as per its stock exchange report.
Additionally, revenue from operations surged by 1.3 percent to Rs 63,437 crore. TCS also declared an interim dividend of Rs 11 per share.
While sharing the quarterly results, Krithivasan mentioned that despite the difficult global economic and geopolitical landscape, the company’s performance remains robust due to strong deal acquisitions and an increasing demand for modern services.
He also underscored the company's ongoing investments in the AI ecosystem, including infrastructure, data frameworks, and business applications.
Point of View
I observe that TCS’s decision to reduce its workforce reflects the broader challenges faced by the IT sector amidst rapid technological changes. The emphasis on AI and upskilling positions TCS to remain competitive. However, the human cost of such decisions raises important questions about job security in the industry.
NationPress
28/07/2025
Frequently Asked Questions
Why is TCS cutting its workforce?
TCS is reducing its workforce to remain agile and adapt to the evolving IT landscape, focusing on artificial intelligence and advanced technologies.
How many employees will be affected?
Approximately 12,200 employees, primarily from middle and senior management roles, will be impacted by the job cuts.
What is the timeline for these job cuts?
The job reductions will take place in the financial year 2026, which runs from April 2025 to March 2026.
What is TCS's current workforce size?
As of June 2025, TCS had a total workforce of 613,000 employees globally.
What recent financial performance did TCS report?
TCS reported a net profit of Rs 12,760 crore for Q1 FY26, a 6 percent increase from the previous year.
