Biggest Layoff in TCS History: 12,000 Jobs Cut as AI, Cost Pressures Bite Hard — Know Why
Tata Consultancy Services (TCS), India’s largest IT services exporter, has announced plans to lay off approximately 2% of its global workforce—around 12,000 employees—over the course of 2025. The move primarily affects professionals in the middle and senior management categories, as the company navigates economic headwinds and rapid technological shifts driven by artificial intelligence.
At the close of Q1 in the current fiscal year, TCS employed over 613,000 people globally. The company stated that the decision is part of its broader strategy to become a “future-ready organisation.”
What Support Will TCS Offer to Affected Employees?
TCS has assured that impacted employees will receive:
- Notice period compensation
- Severance benefits
- Insurance coverage extensions
- Career transition assistance
- Outplacement services and counselling
In an official statement, TCS said:
“We are on a journey to become a future-ready organisation. As part of this transformation, we will be releasing associates whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and senior grades.”
The company emphasized that the layoffs are being carefully managed to avoid disruption in client services.
“We understand this is a challenging time for our colleagues. We thank them for their service and are committed to providing them with appropriate benefits and support as they transition to new opportunities.”
Context: Changing Bench Policies and Hiring Delays
The layoff announcement comes amid internal pushback over TCS’s revised bench policy, which now limits non-project days to 35 annually and mandates a minimum of 225 billable days. Additionally, the company has reportedly delayed onboarding around 600 lateral hires.
Global Tech Sector Layoffs Continue
The TCS layoffs are part of a broader trend across the global tech industry. According to Layoffs.fyi, over 80,000 tech workers have lost jobs in 2025 across 169 companies. In comparison, nearly 150,000 roles were cut across 551 tech firms in 2024.
Microsoft alone has laid off more than 15,000 employees this year, equivalent to 7% of its workforce. In a company-wide message, CEO Satya Nadella acknowledged the emotional weight of the decision:
“This is the enigma of success in an industry that has no franchise value… Progress isn’t linear—it’s dynamic, sometimes dissonant, and always demanding. But it also brings new opportunities to lead and have a greater impact.”
These developments highlight the ongoing recalibration of the global tech sector, as companies adapt to economic pressures and the evolving impact of AI on workforce structures.
