TCS to lay off over 12,000 employees in 2026; know why

Mumbai, Jul 28: In a significant development set to impact the Indian IT job market, Tata Consultancy Services (TCS) has announced plans to lay off more than 12,000 employees-roughly 2% of its global workforce-during the 2026 financial year. The move is part of a larger organizational realignment aimed at adapting to emerging technologies and future skill requirements.

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The layoffs will primarily target middle and senior management roles. TCS CEO K Krithivasan emphasized that the decision is not driven by cost-cutting or AI replacing human jobs. Instead, it reflects a strategic shift as the company invests in large-scale AI deployment and evaluates the skills needed for the future.

“We’ve made substantial investments in employee upskilling, but some roles are no longer feasible for redeployment,” Krithivasan said in an interview. He acknowledged that the decision was among the toughest of his leadership, stressing that all efforts had been made to reskill and retain talent before arriving at this step.

TCS assured that the restructuring will be carried out carefully, with no impact on client service delivery.

Employee reactions reflect widespread anxiety

The announcement has triggered anxiety and debate across social media platforms. On X (formerly Twitter), one user wrote, “If TCS is laying off, what will happen in other IT firms? Looks horrible.” Others pointed to artificial intelligence as the central cause, saying, “The AI threat is no longer in the future. It’s already here.”

On Reddit, employees shared their frustrations with the company's internal practices. One user remarked, “Talented engineers are stuck in support roles. The problem isn't the engineers-it's the management.”

The layoffs come as the Indian IT sector faces growing pressure from evolving client expectations and AI integration. Analysts say TCS’s decision reflects a broader trend across the industry, where adaptability and continuous reskilling are becoming critical for job security.