TCS Layoffs huge update; Voluntary employee exits go beyond 22,000 in two quarters while headcount crosses 30,000

Home BusinessTCS Layoffs large update; Voluntary employee exits go beyond 22,000 in two quarters while headcount crosses 30,000 TCS Layoffs substantial update; Voluntary employee exits go beyond 22,000 in two quarters while headcount crosses 30,000

TCS has witnessed over 22,000 voluntary employee exits in two quarters, leading to a sharp drop in overall headcount amid a hiring slowdown and changing IT industry dynamics.

Published: January 14, 2026 6:10 PM IST By Kumar Utkarsh | Edited by Kumar Utkarsh Follow Us

India’s largest software services company, Tata Consultancy Services Ltd on Tuesday reported headcount decline of over 22,000 staff in the last two quarters due to voluntary churn (leaves), with hiring too slowing down sharply after growing at rapid pace during pre pandemic years.

“The increase in employee departures and exits is largely due to softer hiring trends and other industry-wide challenges. These exits are not necessarily part of any restructuring exercise,” noted analysts, adding that attrition is playing a bigger role in headcount decline at the company.

Analysts and experts tracking the industry say apart from voluntary churns, fresh recruitments have also slowed down sharply during the past year. Restructuring moves which TCS management had announced during June quarter earnings call include voluntary separation programme, hiring freezes and some attrition in recent months.

Note: Additions refer to net headcount additions after accounting for attrition

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Bulk of drop off seen through voluntary churns, restructuring moves. Voluntary churns at TCS have seen a massive increase in the past two quarters, even as fresh hiring has slowed drastically in an industry known for steep additions during positive times.

Headcount

More than 22,000 employees have left the IT giant during the last two quarters due to voluntary churn such as leaves, retirement etc. Sequential headcount decline during October-December quarter was the biggest since June quarter of 2020.

Reasons cited by Employees departing TCS

Over the last two quarters attrition at TCS has increased at the same time slowing down in hiring as clients continue to look at digital transformation with keen interest. Industry watchers and analysts tracking TCS say only a handful of employees left under “release” category which is typically a severance programme initiated by management as part of restructuring exercises. Most of the employees that left TCS during the past two quarters did so due to voluntary churn and attrition among others reasons.

TCS hiring updates

Amidst reports of voluntary churns and layoffs at Indian IT companies a few months back, Tata Consultancy Services, the largest IT firm in India has clarified that hiring will continue across various businesses including campus hiring. Moreover, demand for digital and artificial intelligence (AI)-related skills continues to remain robust with the management focussing hiring on these specific roles.

Revenue rebound but Profit disappoints

Analysts and experts had noted that while the revenue number of TCS beat estimates driven by strong underlying demand in North America and acceleration in AI-led services marginally during the July-September quarter, net profit fell 14 per cent due to various cost including costs related to restructuring exercises. 

About the Author

Kumar Utkarsh

Kumar Utkarsh is a journalist, technology observer, and cricket enthusiast with over three years of experience in the media industry. Currently serving as a Sub-Editor at India Dot Com English, he cov ... Read More

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TCS voluntary exitsIT industryRatan TataTata Consultancy ServicesTCSTCS HiringTCS layoffs

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