TCS to Cut Over 12,000 Jobs in Largest Layoff Amid AI Shift

• TCS plans to cut 12,000 roles (2% of workforce), primarily affecting middle and senior management.
• Restructuring driven by AI automation, weak demand, and the need to modernize operating models.
• Company promises no service disruption and offers reskilling, severance, and redeployment support.

The company's reduction of approximately 12,000 roles, around 2% of its overall global workforce, largely from its middle and senior management levels, was framed as part of the FY 2026 restructuring strategy. TCS communicated the decision as a strategic move in light of changing client demands, and to further expedite AI usage and business agility that also needs to be prepared for any macroeconomic fatigue.

CEO K. Krithivasan described the restructuring as necessary to create a "future-ready" organization but affirmed the commitment to continue providing seamless service during the transition. To support employees affected by the restructuring, TCS is providing reskilling programs, redeployment opportunities, severance payments, and outplacement services, with the intent of minimizing any disruptions.

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This move highlights a trend playing out across the $283 billion Indian IT industry, as AI-fueled automation and sluggish decision-making from clients are already driving major players to transition from traditional labor-heavy models to a lighter, tech-driven structure. TCS, while reporting the cuts, contends that its client delivery operations won't be limited and is expanding into new markets as well as technology investments to stay competitive.