TCS to Cut Over 12,000 Jobs Amid Workforce Restructuring and AI Push

Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to lay off over 12,000 employees — around 2% of its global workforce — in the 2026 financial year. The restructuring will primarily affect middle and senior management, according to a Reuters report on Sunday.

The move is part of a broader strategy to retrain, redeploy, and restructure roles as the company invests in emerging technologies, including artificial intelligence, and expands into new markets.

TCS CEO on the Layoffs

TCS CEO K Krithivasan acknowledged that changing technology trends, client decision delays, and evolving operational models are driving the internal shake-up.

“We need to be future-ready and agile. We have been deploying AI at scale and evaluating skills we will require for the future. Despite significant investments in career development, redeployment hasn’t been effective for some roles,” Krithivasan said, calling the decision one of the toughest he has made as CEO.

He clarified that the layoffs are not directly due to AI replacing jobs but rather a result of aligning workforce skills with future requirements.

Market Reaction

The announcement sparked widespread debate on social media. Many users on X (formerly Twitter) expressed concern about the impact on the broader IT sector, with one post reading:

“If TCS is laying off 12,000 employees, what will happen in other IT firms? Looks horrible.”

On Reddit, several users highlighted AI’s growing impact on employment. Some criticised internal management practices, claiming that TCS has often failed to utilise employee skills effectively, leading to mismatched roles and underutilisation of talent.

What Lies Ahead

The company has assured that the transition will not impact service delivery to clients. Meanwhile, TCS continues to focus on AI-driven business models and reskilling initiatives for its remaining workforce.