India’s TCS to cut 12,000 jobs as it seeks to become ‘future-ready’

Indian technology company TCS has said that it will lay off 12,261 employees, amounting to about 2% of its workforce.  

As of June 2025, TCS had over 610,000 employees worldwide. The latest job cuts will affect mid-level and senior executives. Some observers believe that the layoffs are an indication of things to come in India’s software and Information Technology sector amid increasing automation and the growth of AI. 

TCS said the restructuring was aimed at transforming the company. 

“This includes strategic initiatives on multiple fronts, and while these changes are necessary for our growth and evolution, we understand the impact on our colleagues,” TCS CEO K Krithivasan said in an email to employees. “We thank them for their service and are committed to supporting them through this transition.”

“TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the company said in a statement to the Economic Times. “This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year.” 

India’s software services companies have a cumulative revenue of over USD 283 billion. TCS is among the largest private sector employers in this sector.

Krithivasan told Moneycontrol that the “ways of working” were changing. “We have been deploying AI at scale and evaluating skills we will be requiring for the future,” he was quoted as saying.

However, he appeared to deny that the layoffs were a direct result of AI. 

“This is not because of AI but to address skills for the future,” Krithivasan told Moneycontrol. “This is about feasibility in deployment, not because we need less people.”

Headquartered in Mumbai, TCS is a subsidiary of Tata Sons Private Limited.