TCS Layoffs 2025: Tata Consultancy Services (TCS), a part of the Tata Group, is a major IT company. TCS is known as one of the largest IT service providers not only in India but also in the world. However, according to recent news, TCS has decided to lay off approximately 2% of its workforce, which is around 12,000 employees, in 2025.
The company has stated that this decision was taken due to economic uncertainties and the ongoing changes in AI and technology. This layoff process will be carried out during the financial year 2025–2026.
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Why TCS Is Laying Off Employees
If we try to understand the primary reasons behind the layoffs, one major factor is the growing impact of AI and technology. Most IT companies are now shifting towards artificial intelligence, automation, and newer technologies. Another important reason is the market and client pressure, which is leading to cost-cutting and delays in client decision-making, affecting the company. Also, despite efforts to reskill and redeploy many employees, some roles have become redundant. In other words, many traditional job roles have become less relevant due to AI and automation.
While many employees will be affected by the layoffs, the company has stated that those being laid off will receive proper notice periods, compensation, severance pay, insurance benefits, and outplacement support. However, this major decision is expected to significantly impact many professionals and families in the IT sector.
TCS has clarified that this decision is focused on business agility, tech upgradation, and AI integration, so that the company remains relevant and competitive in the coming decade.
TCS CEO K. Krithivasan stated clearly — “We have been deploying AI at scale and evaluating skills we will be requiring for the future. Still, we find there are roles where redeployment has not been effective.” This means the tough decision was made considering the company’s future growth, adaptability, and market trends.
TCS is not only considered one of the largest IT service providers in India but also globally. The company headquartered is located in Mumbai and has a offices in around 150 locations and operates in 46 countries. As of 2025, TCS has approximately 630,000 employees. TCS has a large client base and offers services in finance, insurance, retail, healthcare, and other sectors. The company, founded in 1968, currently generates more than $30 billion in revenue and has always focused on quality and innovation.
TCS at a Glance in 2025
| Category | Details |
|---|---|
| Founded | 1968 |
| HQ | Mumbai, India |
| Global Presence | 46 countries |
| Employees | 630,000 |
| Revenue (2025) | $30+ Billion |
| Industry Focus | IT Services, AI, Finance, Retail, Healthcare |
| Layoffs (2025) | Approx. 12,000 (2% of workforce) |
Top Reasons Behind the TCS Layoffs
Let’s understand the reasons why changes in AI and technology have forced companies like TCS to make such tough decision:
Role Redundancy and Job Loss: Due to AI and automation, many old processes are now handled more efficiently by machines, making certain job roles redundant. This has particularly affected roles at the middle and senior levels.
Need for Changing Skillsets: TCS stated that while implementing AI, the company tried to train or redeploy employees for new skills. Still, in some roles, this was unsuccessful, which led to the layoff decision.
Business Agility: As technology evolves rapidly, companies need to maintain agility. TCS has increased its focus on innovation and AI integration to remain future-compatible.
Client and Market Expectations: Clients now expect cost-effective and AI-enabled solutions. Hence, TCS had to adopt new tools and platforms and restructure internal teams.
Operational Cost Reduction: With AI automating many routine tasks, the need for manpower has reduced, helping control operational costs.
In summary, due to changes in AI and technology, TCS had to restructure its workforce. There is now a growing need for employees with new, technical skills to replace old roles, leading to significant changes in the company’s operations, services, and business models.
