TCS to Lay Off 12,200 Employees by 2026 Amid AI-Driven Restructuring Plan
Tata Consultancy Services (TCS) announces plans to cut 2% of its workforce—about 12,200 jobs—by FY2026, focusing on mid and senior management roles. The restructuring comes as TCS adopts AI and enters new markets.
TCS to Lay Off 12,200 Employees by 2026 Amid AI-Driven Restructuring Plan
Mumbai — Tata Consultancy Services (TCS), India’s largest IT services company, announced on Sunday that it plans to cut around 12,200 jobs—roughly 2% of its global workforce—by the end of FY2026. The decision is part of a major restructuring strategy as the company accelerates its shift toward AI, automation, and next-generation technologies.
The layoffs will primarily affect mid and senior-level employees. TCS clarified in its statement that the transition is being managed carefully to ensure uninterrupted service to clients.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS said, as reported by Reuters.
While efforts are being made to retrain and redeploy existing employees, the company acknowledged that some roles have become redundant in light of operational streamlining and evolving market demands.
The move comes amid a broader slowdown in the global IT sector, with clients tightening technology budgets due to inflation and uncertainties surrounding U.S. trade policies. TCS CEO K. Krithivasan had recently noted delays in project approvals and decision-making from clients, which have also contributed to the slower growth outlook.
TCS currently employs over 600,000 professionals worldwide and remains one of India’s leading IT exporters. Despite the layoffs, the company is investing heavily in AI, cloud computing, and entering new global markets as part of its long-term transformation.
