In 2025, Tata Consultancy Services (TCS), the most prominent IT consulting company in India, intends to lay off 12,000 workers, or nearly 2% of its global workforce. Targeting primarily mid- and senior-level positions, this action is a component of a “future-ready” strategy that emphasizes deployment of artificial intelligence and new markets. The recent TCS layoffs, their causes, the help being provided to impacted staff, and the implications for the IT industry are all covered in this article.
TCS Layoffs 2025: What Happened and Why
In July 2025, TCS recently announced that it would lay off 12,200 employees, or about 2% of its workforce, during the fiscal year 2025–2026. The decision comes after a period of modest growth, with TCS’s workforce as of June 30, 2025, at 613,069, after a net addition of 5,000 employees in the previous quarter. CEO K. Krithivasan stressed that the changes are intended to realign talents for the future as well as reduce staff.
Key facts about the 2025 layoff plan include:
- Scale: Approximately 12,200 jobs (nearly 2% of 613,000+ workers) will be eliminated globally in FY 2026.
- The majority of those affected were mid- and senior-level associates whose jobs might not be appropriate for upcoming business needs. Lower-level staff and ongoing projects ought to be the least impacted.
- Justification: As part of its efforts to become a “future-ready” business, TCS says it is investing in AI, new tech markets, and tech sectors. Leaders emphasize that clients are not directly impacted.
- Worker support: Notice pay, severance benefits, extended insurance, and outplacement services will be provided to impacted employees. According to the company, workers who are laid off will also receive counseling and assistance with job transfer.
Together, these numbers make this the largest layoff in TCS’s history. TCS had so far largely avoided mass layoffs; in 2015, for legal and policy reasons, it even overturned the termination of a pregnant employee. In contrast to multi-thousand job cuts, TCS’s involuntary attrition rate has historically been between 0.8 and 1% per year (e.g., about 2,574 exits in FY2015).
Why TCS is Cutting Jobs
The main causes pointed out are economic and technological changes. Rapid AI adoption and low customer demand, especially in cost-conscious sectors, are forcing TCS and its competitors to hire as many people as possible. The unclear macroenvironment contributed to TCS’s longer decision cycles along with customer project delays, according to Reuters. Furthermore, industry observers claim that AI is taking the place of repetitive IT tasks, which is forcing large service providers to modify their labor-intensive business models.
TCS specifically needs to focus on acquiring new skill sets, the company said. While employees have been reskilling, TCS CHRO Milind Lakkad told the media that if redeployment is not feasible, excess people will be released. Essentially, positions without a path forward are being removed under the new AI-driven approach. “One of the toughest decisions,” Krithivasan said, this layoff was required to preserve flexibility.
Other factors:
- Cost optimization: Consolidation, efficiency, and cost continue to be the key concerns of consumers. TCS explicitly mentions vendor consolidation and price concerns in relation to customer budgets.
- Bench productivity: Because of TCS’s more stringent “bench” policy (unbilled staff pool), workers search for projects quickly. Those who fail to submit assignments on time may be fired, which could lead to further headcount reduction.
- Growth calibration: TCS had paid all of its employees by 2025, and there was very little net attrition. TCS now plans to examine lateral hiring as a result of demand.
- Essentially, until demand increases, future job offers may decrease.
In short, TCS says it is adapting to a slower growth phase and an AI era by cutting only where necessary to “future-ready” the company.
TCS Layoff History and Attrition Patterns
While this is the first major mass layoff announced by TCS, the company has previously carried out targeted layoffs under the guise of “involuntary layoffs.” For example, during FY15, it reported that a total of about 3,000 employees (roughly 1%) would be leaving during the year and that 2,574 nonproductive employees (0.8% of the workforce) would be involuntarily separated. According to TCS, these layoffs were considered performance-based layoffs, and it had no plans to conduct mass layoffs in the future. But that was just a statement. Now the 12,000 layoffs in 2025 are much more. Press outlets are actually calling this the “first mass layoff in the Indian IT sector” because historically dominant firms like TCS and Infosys have rarely laid off such a large number of employees.
After years of stable employment at TCS, employees will still be impacted by the move, which is frequently presented as a strategic skilling shift rather than a simple downsizing.
Impact on Employees and Support Measures
Next month, the impacted workers’ employment at TCS will come to an end. To make the transition easier, TCS has committed to offering retirement benefits and assistance. According to the official statement:
- No layoffs in project delivery teams: TCS (Tata Consultancy Services) says it is planning this transition “with utmost care so that there is no impact on client services.” This means billable employees on active projects are largely safe.
- Retirement and benefits: According to reports, TCS will provide notice-period pay, additional retirement, extended health coverage, and job placement assistance to those leaving the job. This is aimed at softening the shock.
However, a lot of workers are worried, particularly managers in their mid-career. The new TCS policies, including bench rules, have already been the subject of complaints from the fledgling IT workers’ union (NITES), which has also voiced concerns about these cuts and other changes to the workplace.
Bench Policy and “Silent Layoffs”
TCS’s bench policy is a noteworthy related issue. TCS required that workers find projects within 35 days of being placed on the bench in 2025, failing which they would be fired. Worker groups have criticized this rule, arguing that it effectively forces resignations if an employee isn’t billable promptly. Outside of formal layoff announcements, it’s a “silent” method of staff reduction. Workers say they may be asked to leave if they are unable to find a project even after the allotted 35 days.
The company is also moving from remote working to working in the office as much as possible. For example, TCS recently mandated all US employees to return to work five days a week. TCS’s effort to strengthen traditional work arrangements after the pandemic is evident in this global effort to return to on-site work (except for client needs).
Pregnancy and Legal Protections
Can a female employee who is pregnant be fired? This is a common question. Except in cases of egregious misconduct, it is illegal to fire a pregnant woman in India under the Maternity Benefit Act. This was confirmed by TCS in a 2015 case: Sasi Rekha, a pregnant employee, was first given notice during a mass departure, but TCS later revoked her termination “in line with its practice of not relieving any employees during pregnancy” after the Madras High Court stepped in.
TLDR: Terminating a female employee due to her pregnancy is prohibited by law. As demonstrated by the 2015 case, TCS respects legal rights and has a state policy against terminating pregnant employees.
Support and Redeployment
TCS highlights that “reskilling and redeployment initiatives” are in progress with the goal of assigning workers to emerging roles whenever feasible. But those who don’t have a defined role are being let go. The business has apologized and offered assistance, “making all efforts to provide outplacement, counseling, and support.” The main takeaway from TCS leadership is that, in spite of job losses, the company is still making significant investments in new technology and business expansion.
Industry Context: Other IT Layoffs and Trends
The action taken by TCS aligns with a general slowdown in India’s IT industry. India’s major IT companies experienced a sharp decline in new hires from quarter to quarter in 2024–2025 (one report found that the top six companies had a 72% decrease in new hires in Q1 2025 compared to Q4 2024). Numerous tech companies around the world have been laying off employees since 2022; one analysis of tech layoffs in 2023 (excluding TCS) found over 266,000.
Similar demands have also been met by Indian competitors, such as Wipro and Infosys, who have reduced expenses and frozen some hiring (though none have announced cuts as drastic as TCS’s 2%). Thousands of employees were let go by Byju’s, Ola, Dunzo, and other startups mentioned in 2022–2025 during their downturns.
TCS (Tata Consultancy Services) Corporation’s recent decision to cut 12,000 jobs is being closely watched worldwide. Observers say TCS has long been considered a stable employer—a place for long-term careers. By carrying out this large layoff, TCS is setting a precedent that “no company is immune” from restructuring in the tech sector. Indeed, analysts quoted by the press say the move “highlights an industry-wide development” where traditional job security is eroding.
On the other hand, TCS is continuing its aggressive hiring practice to satisfy its future needs. The CHRO revealed plans during January 2025 for the recruitment of 40,000 freshmen from colleges, with an emphasis on AI skills at all levels. This indicates that TCS still expects to grow and hire talent even as it makes cuts elsewhere. Milind Lakkad asserts that quarterly variations in workforce are normal and are managed using productivity and benchmarking metrics.
TCS Layoffs: Everything Employees Should Know
Is TCS laying off employees in India in 2025?
According to reports, TCS has begun laying off employees in a few areas as part of internal reorganization. There hasn’t been a formal announcement of mass layoffs yet, though.
Will layoffs continue in India in 2025?
Due to automation and pressures from the global economy, layoffs in India may persist in 2025, particularly in the IT and startup industries. TCS might respond by adopting a conservative hiring approach.
Are layoffs happening in other TCS locations?
In several foreign TCS offices, particularly in North America & the UK, where customer demand has decreased, layoffs have indeed been reported.
Will TCS hire fresh graduates after these layoffs?
Campus drives are still used by TCS to hire new employees, albeit less often. Hiring based on skills and in line with project requirements is the company’s main focus.
Is a job at TCS secure?
In contrast to startups, TCS is generally regarded as stable. Even big IT companies, though, are implementing performance-based layoffs in 2025. Thus, upskilling is still essential.
Will TCS increase salaries in 2025?
Due to the current economic climate, TCS may offer performance-based raises in 2025, but company-wide increases may be cautious.
Can TCS lay off pregnant women?
It is against Indian labor law to fire pregnant workers without good cause. Layoffs of this kind are extremely unlikely because TCS typically complies with all legal requirements.
What is the highest salary package at TCS?
Specialized positions in AI, data science, or consulting usually offer the highest compensation packages at TCS, with senior-level salaries reaching ₹50–70 LPA (or more).
Conclusion
The information technology (IT) industry’s tendency toward machine learning, artificial intelligence, and fewer employees is reflected in TCS’s 2025 layoffs. Despite the fact that the action may appear alarming, it is part of a broader plan to remain competitive. The affected employees are receiving assistance from the organization. It acts as a reminder to current TCS workers to update their skill set and update themselves on any changes to internal policies. Acquire new abilities, with a focus on artificial intelligence. TCS is still financially stable and is restructuring for long-term development rather than a crisis. This is the main takeaway.
