Mumbai | September 30, 2025:
In a development that has sent tremors across India’s tech industry, Tata Consultancy Services (TCS) — the country’s largest IT services company — has initiated a major layoff drive, citing global economic pressures, automation, and changing client demands. The TCS layoffs are expected to affect thousands of employees across multiple departments, marking one of the biggest workforce reductions in the company’s recent history.
📉 Mass Layoffs Across Departments
According to internal sources and industry reports, TCS has begun laying off employees across delivery, support, and mid-management levels. The layoffs are being carried out in phases, with the first wave impacting nearly 10,000 employees globally.
The company is focusing on non-billable roles, underperforming units, and functions where automation has replaced manual tasks. A significant portion of the layoffs is concentrated in bench strength employees — staff who are not currently assigned to client projects.
A senior TCS executive, speaking on condition of anonymity, said,
“The market situation is tough. Many of our key clients in banking and retail are cutting discretionary spending. We have no choice but to optimize resources and align with future technologies.”
🌍 Global Slowdown and AI Push Behind Layoffs
The TCS layoffs come at a time when the global IT sector is undergoing a seismic shift. Economic slowdowns in the US and Europe, combined with rapid adoption of AI and automation tools, are forcing IT giants to rethink their workforce structures.
TCS, which employs over 620,000 people worldwide, has traditionally maintained a reputation for job stability. However, increasing pressure to improve margins and compete with more agile AI-powered startups has led to cost-cutting measures, including layoffs, hiring freezes, and internal restructuring.
Industry analysts point out that TCS’s decision mirrors a global trend:
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US tech giants like Google, Meta, and Amazon have already laid off tens of thousands of employees this year.
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Indian competitors like Infosys and Wipro have slowed down hiring and quietly trimmed staff in select verticals.
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AI tools are replacing repetitive coding and testing tasks, reducing the need for large human teams.
🧍 Employees Caught Off Guard
For many TCS employees, the layoffs have come as a shock. Several mid-level professionals, some with over a decade of service, have reported receiving termination emails without prior warning.
A project manager from Bengaluru shared,
“I dedicated 12 years to TCS. I never imagined I would be asked to leave with just a month’s notice. There was no personal meeting, just an email.”
Employee unions and industry groups have criticized the company for the lack of transparency and empathy, especially at a time when the job market is tightening.
🧭 TCS’s Official Stand
In its official statement, TCS confirmed that “a workforce realignment exercise” is underway but did not disclose exact numbers. The company stated:
“As part of our annual business planning, we continuously assess workforce needs. This year, we are focusing on enhancing operational efficiency, investing in new technologies, and optimizing roles that no longer align with strategic objectives.”
TCS emphasized that employees impacted by layoffs will receive severance packages and career transition support, but details remain unclear.
📈 Impact on the IT Industry
The TCS layoffs are expected to have a ripple effect across the Indian IT sector. As the second-largest private employer in India, TCS often sets trends that other IT companies follow. If cost pressures continue, experts predict more layoffs and slower hiring across the sector in the coming quarters.
Stock markets have already reacted cautiously, with TCS shares dipping 2.8% on the BSE following news of the layoffs. Investors are watching closely to see how TCS manages cost-cutting while sustaining growth in emerging areas like AI, cloud computing, and cybersecurity.
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