Shares of Tata Consultancy Services (TCS) declined on Monday, July 28, 2025, after India’s largest IT services firm announced plans to lay off approximately 12,000 employees this year. The stock dipped 1.69% to ₹3,081.20 on the BSE, and 1.7% to ₹3,081.60 on the NSE, reflecting investor concerns over the workforce reduction.
The layoffs, which represent around 2% of TCS’s global workforce, will primarily affect employees at the middle and senior levels. As of June 30, 2025, the company’s total headcount stood at 6,13,069, with an addition of 5,000 employees during the April–June quarter.
In a statement, TCS said the move is part of a larger strategy to transform into a “future-ready organisation” by realigning its workforce to better support investments in artificial intelligence, technology upgrades, and market expansion.
“Towards this, a number of reskilling and redeployment initiatives have been underway,” the company noted. “As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year.”
TCS emphasized that it will provide outplacement support, counselling, and benefits to the affected employees.
The decision comes amid a challenging macroeconomic environment for the global tech industry. India’s top IT services firms have posted single-digit revenue growth in the first quarter of FY26, with rising geopolitical tensions and global economic uncertainty leading to project delays and cautious client spending.
The layoffs signal a more cautious and performance-focused approach by TCS as it adapts to the evolving tech landscape and shifting client demands.
