Tata Consultancy Services to Cut Workforce by 2% Amid Transformation Plans

TCS Announces Workforce Reduction

Tata Consultancy Services (TCS), a leading IT services firm, has announced plans to decrease its global workforce by 2% in the financial year 2025-2026. This reduction will primarily impact employees in middle and senior management roles, as reported by a business news outlet.

With a workforce exceeding 600,000 globally, this decision could potentially affect around 12,000 employees.

The workforce reduction is part of TCS's strategy to evolve into a 'Future-Ready' organization. This initiative encompasses investments in cutting-edge technologies, entry into new markets, extensive use of artificial intelligence for both client services and internal processes, as well as a comprehensive overhaul of its workforce and infrastructure.

According to the company, this transformation will involve releasing certain associates whose roles may no longer be viable. The company stated, 'This will impact about 2% of our global workforce over the course of the year.'

Importantly, TCS assured that this workforce reduction would not compromise the quality of service provided to clients.

Recognizing the difficulties faced by affected employees, TCS expressed its commitment to offering suitable benefits, outplacement services, counseling, and support to assist them in finding new opportunities. Additionally, the company has initiated reskilling and redeployment programs aimed at aligning its workforce with future-oriented skills.