TCS Layoffs 2025 — What Happened, Why It Matters, and What Affected Employees Should Do
What exactly was announced?
TCS announced plans to reduce around 12,000 jobs over the 2025–26 year, targeting mainly mid- and senior-level positions and those who have been unassigned to client projects for extended periods. The figure — quoted by multiple outlets — equals roughly 2% of TCS’s ~610k+ global workforce.
Timeline — how events unfolded
- Early Aug 2025: Internal planning and manager-level lists of roles identified for reduction were reportedly prepared.
- Aug 2025: Media reports broke that TCS would cut c.12,000 jobs across FY26. Management told stakeholders the move is part of restructuring to be “future-ready.”
- Late Aug–Sep 2025: Employees and unions staged protests; some employee groups sought legal remedies and government intervention over severance and process concerns.
- Early Sep 2025: TCS simultaneously announced wage increases for most employees while implementing the workforce realignment. Company statements described the effort as a re-skilling and optimisation exercise.
Why is TCS cutting jobs? Company view vs industry context
TCS says the reductions are part of a strategic realignment to focus on high-value services — AI, cloud transformation and software product engineering — and to reduce long-standing bench costs (employees without client billing assignments). Management has framed layoffs as steps to make the company “more agile and future-ready.” At the same time, TCS has communicated salary bumps and reskilling support for many staff.
Industry analysts add context: the decision follows weaker client spending in a tough global economy plus rapid adoption of AI tools that change skills demand across IT services. Reuters and industry commentators suggest this could be the start of larger, AI-driven transformation in India’s $283bn outsourcing sector.
Who is most affected?
Reports indicate the cuts disproportionately affect mid- and senior-level professionals, and those who have been on the bench or in legacy roles where redeployment hasn’t worked. Some outlets say the actual number of exits may vary as the company completes reviews across regions.
Union backlash, protests and government attention
Trade unions and employee groups have protested the layoffs, calling for fair consultation, better severance and government oversight. Some unions have sought legal action, saying retrenchment rules and protections should be enforced. The situation prompted wider debate about corporate responsibility during technology transitions.
What TCS employees are reportedly being offered
- Salary increases for the majority of retained employees: multiple reports say TCS is issuing raises (around 4.5–7% for many) even as reductions proceed.
- Reskilling and redeployment programs — the company highlights training as part of its workforce realignment.
- Severance packages and outplacement support — details depend on grade, contract and local law.
What this means for the wider Indian IT sector
TCS is often seen as a bellwether for Indian IT. Large moves by TCS can accelerate similar restructuring at peers that face the same pressure from changing client needs and automation. Analysts warn that, while many tech roles will evolve rather than disappear, the near-term disruption could be significant for thousands of professionals who need to upskill.
Practical steps for affected employees (or those worried about future cuts)
- Secure documentation: Keep offer letters, appraisal records, HR emails, and termination/settlement communications. These matter for statutory rights and any legal claims.
- Understand your package: Ask HR for written details of severance, notice period, benefits continuation, and any re-deployment options.
- Tap company support: Take up reskilling, internal mobility, coaching and outplacement services where offered.
- Update your profile: Refresh LinkedIn, GitHub, portfolio, and prepare a concise resume emphasizing marketable skills (cloud, AI tooling, data engineering, product work).
- Network & freelance: Connect with ex-colleagues, recruiters, and consider contract or freelance roles via platforms like Upwork, Toptal, or local consultancies.
- Legal paths: If you suspect procedural unfairness, consult a labour lawyer or union representative — especially where local labour laws provide protections for retrenchment.
FAQ — quick answers
Q: How many jobs did TCS cut in 2025?
A: Reports indicate around 12,000–12,250 roles over FY26 (roughly 2% of the workforce). Figures vary as the review progresses.
Q: Is AI the reason for the layoffs?
A: TCS management says the cuts are part of broader restructuring — not solely because of AI. However, many analysts link the move to an industry shift driven by automation and AI that changes skills demand.
Q: Will other IT firms follow?
A: Possibly. When a large industry leader restructures, peers often re-examine their headcount and skills strategies. The macro environment (client spending, inflation, global demand) will influence decisions.
Sources & further reading
- Reuters — TCS layoffs and AI industry context.
- LiveMint — Detailed reporting on 12,261 jobs and affected grades.
- Times of India — Union protests and industry reaction. :contentReference[oaicite:16]{index=16}
- CRN — Wage hikes and company statements.
- Business Standard — Salary hike details for many employees.
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