TCS Reports Increase in Employee Attrition Rate Amid Workforce Expansion

Tata Consultancy Services (TCS) has reported an increase in its employee attrition rate to 13.8% in the first quarter of fiscal year 2026, up from 13.3% in the previous quarter. Despite this rise, the company has successfully added over 5,000 new employees, bringing its total workforce to 613,069. TCS continues to invest in training and skill development, with a significant focus on emerging technologies and artificial intelligence. This highlights the ongoing challenges in retaining talent amidst a recovering global IT demand landscape. Discover more about TCS's strategies and workforce dynamics.

By Narendra Chaudhary Jul 10, 2025, 17:57 IST

Rising Attrition Rate at TCS

Tata Consultancy Services (TCS), India's largest IT service exporter, has reported a rise in its employee attrition rate. According to the company's quarterly report, there was a slight increase in the rate of employees leaving the organization during the quarter ending June 30, 2025 (the first quarter of fiscal year 2026). The attrition percentage stood at 13.8%, up from 13.3% in the previous quarter. This uptick comes at a time when TCS continues to invest heavily in workforce training and skill development.

Details on Employee Turnover

In the first quarter of fiscal year 2026, TCS recorded an attrition rate of 13.8%, reflecting a minor increase compared to the 13.3% observed in March 2025. Despite this rise, the company expanded its workforce by adding over 5,000 employees during the quarter. As of June 30, 2025, TCS's total employee count reached 613,069, an increase from 607,979 in the previous quarter.

While the current attrition figures are still lower than the peak levels seen during the post-pandemic hiring surge, they indicate that retaining talent remains a challenge in the gradually recovering global IT demand landscape.

Focus on Learning and AI Skills

Commenting on the company's human resource strategy, Milind Lakkad, TCS's Chief Human Resource Officer, emphasized that talent growth is fundamental to TCS. During this quarter, employees dedicated 15 million hours to gaining expertise in emerging technologies, enabling them to lead transformation journeys for clients.

He also noted that TCS now boasts over 114,000 employees with high-level AI skills, showcasing the company's ongoing commitment to nurturing talent in sectors such as artificial intelligence, cloud computing, and automation.