TCS to Reduce Workforce by 2% Amid AI-Focused Transformation

India’s largest IT services firm, Tata Consultancy Services (TCS), has announced plans to reduce its global workforce by approximately 2% in FY26 (April 2025–March 2026). The decision, affecting around 12,000 employees, primarily targets middle and senior-level positions, as the company realigns its operations to embrace AI and next-gen technologies.

TCS CEO K Krithivasan called this a “tough but strategic move”, acknowledging the growing need for agility and future-readiness in a rapidly evolving tech landscape. The company has been actively investing in AI integration, digital operating models, and skill development, but certain roles remain redundant despite efforts toward redeployment.
“We are working towards building a future-ready workforce and embracing scalable AI solutions. However, some roles are no longer aligned with our strategic direction,” said Krithivasan.

With a current employee strength of over 6.1 lakh, TCS is navigating industry-wide changes, including market volatility and a shift in customer demands, by pivoting towards automation, innovation, and reskilling initiatives.