Tata Consultancy Services (TCS) shares dropped sharply on Tuesday morning wiping out Rs. 6550 crore of investor money in just the first 15 minutes of trading. This fall came right after Rs. 20000 crore was lost on Monday following the company’s big announcement that it plans to lay off 12000 employees over the next year. By early Tuesday the company’s market value (market cap) fell to as low as Rs. 11.07 lakh crore. The news has made many investors worried about what’s next for India’s biggest IT firm. TCS to lay off 12000 employees As of the end of June 2025 TCS had a global workforce of 613069 employees. But now the company has announced plans to cut 12000 jobs mainly targeting mid and senior-level roles. TCS said this move is part of a broader strategy to adjust to future business needs especially as current market conditions make it hard to keep certain employees on projects. Despite the job cuts TCS assured that client services will continue without any disruption. The company also promised that affected staff will get their full notice period salary along with extra exit benefits. In addition they’ll offer extended insurance counselling career support and help during the transition. Legal trouble over TCS new bench policy TCS is also facing legal challenges from employees over its newly introduced bench policy. According to this rule workers who are not assigned to any project can remain on the bench for only 35 days in a year. After that they may face performance reviews. The policy also requires employees to have at least 225 billable days each year. IT hiring slows down across the sector The entire IT industry is seeing a slowdown. According to data from The Economic Times hiring by the top 6 Indian IT companies dropped sharply down more than 72 per cent in the April–June quarter. They hired just 3847 people compared to 13935 in the previous quarter.