TCS Reports ₹10,000 Crore Jump in Employee Costs for FY26; Restructuring Hits ₹1,388 Crore

Tata Consultancy Services (TCS) reported ₹1,388 crore as restructuring expenses in FY26, shown under exceptional items in its consolidated accounts.  

As per the company, ₹1,268 crore was utilised during the year, indicating that most of the costs related to workforce changes have already been recorded in the financials. 

Headcount Declines Over the Year 

The company’s workforce reduced by more than 23,000 employees during FY26. The total headcount stood at 584,519 at the end of the year. The reduction followed a restructuring exercise that began in July 2025.  

Employees without redeployment opportunities were released, with separation benefits provided under company policy. 

Employee Costs Increase 

Employee expenses rose to around ₹1.5 lakh crore in FY26, an increase of roughly ₹10,000 crore compared with the previous year.  

The rise in wage costs came despite the decline in overall employee numbers, a combination of salary outgoes, hiring in select areas, and restructuring-related expenses. 

Hiring Continues in Select Areas 

The company continued recruitment during the year, including experienced professionals and campus hires. Hiring activity was more visible in the final quarter.  

According to Chief HR Officer Sudeep Kunnumal, the company focused on building skills aligned with artificial intelligence and related areas, alongside internal training programmes. 

Read More: TCS Declared ₹31 Final Dividend: Check Dividend History, Record Date and More! 

Tata Consultancy Services (TCS) Share Price Performance  

As of April 10, 2026, 10:27 am, Tata Consultancy Services Ltd (TCS) share price was trading at ₹2,516.50, down 2.80% from the previous closing price. 

Conclusion 

The rise in employee costs alongside a reduction in headcount reflects structural changes during the year. Most restructuring costs have been accounted for in FY26, with workforce adjustments continuing in line with business requirements. 

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