Tata Group veteran IT company Tata Consultancy Services (TCS) has taken a major decision, which can affect the jobs of thousands of employees in the coming months. The company has made it clear that it is going to reduce its global workforce about 2 percent during FY 2026 (April 2025 to March 2026). This will directly affect more than 12,000 employees. Currently, about 6.13 lakh employees are employed in the company. Accordingly, about 12,200 people can come under the grip of trimming. This layoff will affect all the countries and work areas of TCS, where the company is working.
CEO of TCS Kritivasan said in an interview, we are moving towards change in new technology, especially AI and operating models. With this, the methods of work are changing and we have to make ourselves more agile and ready for the future.
He also admitted that the company tried to upset its employees and redeem them, but there were some roles where this could not be possible. Therefore, it became necessary to trim.
According to him, this decision will mainly affect the employees of mid and senior levels. CEO called it "the most difficult decision of career so far".
The TCS has said that it will give the notice period pay to the affected employees as well as aided serence package, health insurance and outplaces. However, the reason for the retrenchment is not AI but the boundaries of re-scaling and deployment.
The company says that it is continuously investing in its workforce to teach them new -age skills, but not all the roles fit into the new scheme.
The new bench policy of TCS recently implemented remains a cause of tension for the employees. Under this policy implemented from 12 June 2025, any employee will have to complete 225 billable days in a year. That is, they will have to spend at least so many days in a year on such a project from which the company gets direct revenue.
Apart from this, the duration of living on the bench (ie stay out of the project) is now limited to only 35 days. Earlier this time was quite high. Thousands of employees are expected to be affected by this policy, especially those who live on the bench till the new projects are received.
Although the company did not say how many employees in India will be affected by this retrenchment, but since India is the largest employee of TCS, experts believe that the effect will definitely be seen here too. Also, this deduction at mid and senior level can become a cause of concern for experienced professionals who have been working in the company for a long time.
