TCS cuts down jobs of more than 30,000 employees, has significantly reduced its workforce

Home BusinessTCS cuts down jobs of more than 30,000 employees, has significantly reduced its workforce TCS cuts down jobs of more than 30,000 employees, has significantly reduced its workforce

The aim is to make the company 'future-ready', increase productivity, and focus on Artificial Intelligence.

Published: January 13, 2026 3:26 PM IST By Tahir Qureshi | Edited by Tahir Qureshi Follow Us (Representational image)

New Delhi:  The layoffs at the country’s largest IT company, Tata Consultancy Services (TCS), continued in the third quarter as well. In October-December 2025 (Q3 FY26), the IT company reduced its workforce by 11,151 employees. This is the second consecutive quarter in which the company has carried out layoffs. During the previous July-September quarter, TCS laid off 19,755 employees. By the end of December 2025, the total number of employees at TCS had decreased to 5,82,163, down from 5,93,314 at the end of September.

TCS wants to be future-ready, restructure

Since the beginning of FY26, the company has reduced its workforce by more than 30,000 employees. This is part of the restructuring process announced by the company in July 2025. The aim is to make the company ‘future-ready’, increase productivity, and focus on Artificial Intelligence. The voluntary attrition rate (for the last 12 months) in IT services increased to 13.5% in the third quarter, compared to 13.3% in the previous quarter. The company is realigning roles, increasing efficiency, and emphasizing emerging skills such as AI and digital transformation.

TCS is increasing recruitment of freshers in targeted areas

TCS CEO K Krithivasan mentioned that the company is rapidly moving towards becoming the world’s largest AI-based technology services company. AI services now contribute $1.8 billion to the company’s annualized revenue. Despite layoffs, the company is increasing the recruitment of freshers in targeted areas. According to reports, graduate hiring has been doubled to support AI and digital projects.

TCS remains country’s largest private sector employer

This trend perfectly illustrates the challenges facing the IT industry: slowing growth, the need for cost optimization, and a shift towards AI/digital skills. Companies like TCS and HCL Technologies are undergoing restructuring. On the other hand, fresh hiring for AI is continuing. This change aims to protect margins and prepare for future growth. TCS remains the country’s largest private sector employer.

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Tahir Qureshi

Tahir Qureshi is a seasoned media professional with a nose for news. He can top be described as a complete package, perfectly suited to journalism, since he can unearth buried, forgotten, authentic c ... Read More

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