TCS Layoffs 2025: What Will the Affected Employee Receive

Tata Consultancy Services (TCS), India’s largest IT services firm, has confirmed it will reduce its global workforce by 2% during FY26, as per a Moneycontrol report. The layoff, impacting around 12,261 employees, will be carried out gradually with a human-centric approach, in line with the company's HR policies.

Phased Layoffs with Focus on Skill Mismatch

TCS CEO K. Krithivasan clarified that the layoffs are not driven by Artificial Intelligence disruption. Instead, the affected roles stem primarily from a gap in deployable skills. The company stated that this workforce rebalancing will occur in a phased manner through FY26 and will not be abrupt. Employees with role mismatches or no viable projects will be given support before separation becomes necessary.

Support Measures for Affected Employees

TCS has assured a compassionate exit strategy. Employees impacted by the restructuring will receive notice-period salary, additional severance benefits, extended health insurance, and access to outplacement services. Moreover, TCS will also offer counselling support to help employees transition through the career change with minimal hardship.

Read More: TCS to Layoff 12,000 Employees, or 2% of its Workforce, Due to Skills Gap and Shifts in Technology!

AI Not the Primary Cause, But Restructuring Needed

Addressing concerns around AI-induced job losses, Krithivasan reaffirmed that the current layoff was not a result of AI productivity gains. While AI is influencing IT delivery models globally, the ongoing layoffs at TCS are not directly based on such factors but are more about business alignment, project needs, and workforce adaptability to newer service paradigms.

Long-Term Workforce Strategy

As part of future readiness, TCS continues to focus on upskilling junior professionals to fit into evolving technology stacks and delivery models. The company is working on optimising its workforce structure to stay lean, competitive, and prepared for increasing client demand for digital-agile services.

Tata Consultancy Services Share Price Performance

On July 30, 2025, Tata Consultancy Services share price opened at ₹3,060.00 on NSE, above the previous close of ₹3,056.00. During the day, it surged to ₹3,069.00 and dipped to ₹3,047.20. The stock is trading at ₹3,058.00 as of 11:07 AM. The stock registered a marginal change of 0.07%.

Over the past week, it has declined by 2.86%, over the past month, it has declined by 10.37%, and over the past 3 months, it has declined by 10.37%.

Conclusion

TCS’s layoff strategy for FY26 will affect over 12,000 employees globally, mainly due to skill misalignments rather than AI-led efficiency gains. The company is implementing this with a staged approach, offering severance, counselling, insurance extension, and job transition support to impacted staff members.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.