TCS Layoffs 2025: India’s largest IT services company, Tata Consultancy Services (TCS), has initiated a major workforce reduction, laying off more than 12,000 employees globally. This accounts for nearly 2% of its total workforce, sending shockwaves across the tech sector. The move comes as part of TCS’s broader transformation strategy aimed at becoming a “future-ready organisation.”
Here’s a complete breakdown of the Top 5 updates on the TCS layoffs, their causes, and their implications for the Indian and global IT job market.
1. Why TCS is Laying Off 12000 Employees
TCS announced that the job cuts are not driven by AI, but rather due to a skill mismatch and resource deployment issues. In a statement released on Sunday, the company said the layoffs are part of their strategy to invest in technology, AI deployment, market expansion, and workforce realignment.
The company emphasized that this transition involves reskilling and redeployment initiatives, but some roles, especially in mid and senior management, will be released where redeployment is not possible.
“This is not because of AI giving some 20 per cent productivity gains. This is driven by where there is a skill mismatch,” said TCS CEO K Krithivasan.
“It will be handled in a very, very compassionate way,” he added.
2. Who is Affected: Mid and Senior-Level Employees Hit the Hardest
According to reports, a total of 12,261 employees, mainly from mid to senior levels, are impacted by this decision. The layoffs started in early July, hitting employees aged between 24 and 55 in locations like Bengaluru, London, and Princeton.
Employees on the bench—a term used for those without active projects—particularly those with Work from Office (WFO) index issues, are among the first to be let go.
A source told Mint,
“People in the bench with WFO index issues are also getting released by the system, and have been asked to go.”
3. Managers Asked to Submit Names for Pink Slips
In a move that has stirred controversy, TCS Business Heads have been directed to submit a list of employees considered for termination. Sources say that while one-third of layoffs will come from benched employees, the remaining will be selected from this list.
This strategy reflects an organized effort by the company to trim its workforce while aligning with new market and skill requirements.
4. Government Responds: IT Ministry Monitoring the Situation
The Ministry of Electronics and IT (MeitY) has taken note of the layoffs and is actively monitoring the situation. According to a report by PTI, the ministry is in close communication with Tata Group to understand the rationale behind the decision and ensure fairness.
The government’s intervention signals the severity and national impact of the layoffs, particularly in a time when India’s IT sector is seen as a key economic driver.
5. Market Impact: TCS Shares Continue to Tumble
The layoff announcement has had a direct impact on investor sentiment. TCS shares dipped by 2% on Monday, and the downward trend continued into Tuesday. Market analysts are now debating whether this is a short-term reaction or a sign of deeper structural concerns in the Indian IT industry.
Investors are also closely watching for further updates from TCS leadership and the company’s Q2 outlook.
TCS’s decision to cut over 12,000 jobs highlights the changing landscape of the IT industry, where skills and adaptability matter more than ever. While the company is pushing toward becoming more agile and future-ready, the human impact of these layoffs is significant.
With the government keeping a close watch and industry unions raising ethical concerns, the coming months will be crucial in determining whether this move sets a precedent or a cautionary tale for other IT giants.
Stay tuned for more updates on TCS layoffs and the evolving Indian IT job market.