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TCS Signals More Layoffs; Targets 2% Workforce Reduction in 2026
Tata Consultancy Services (TCS) has confirmed it may continue layoffs after letting go of 30,000 employees in just six months. The company said further firings will depend on business needs and performance alignment.
TCS Layoff
TCS's hiring department has confirmed that job cuts linked to its ongoing restructuring plan will continue in 2026. The IT giant announced a major restructuring in 2025, which led to disengagement for at least 30,000 people.
After announcing its Q3 results, TCS stated that the layoffs will continue into the next quarter. The HR department has not shared any details about the number of job cuts.
TCS chief human resources officer, Sudeep Kunnumal, said, “The company let go of around 1800 employees during the October-December quarter. This number seems much lower than what the TCS fact sheet on its quarterly results shows.”
According to TCS Q3 FY26 data, at least 11,151 employees were laid off. It marked a second consecutive quarter of downsizing. And once an employee left, TCS did not make a hiring to fill the vacancy.
The total employee count dropped to 5,82,163 at the end of December, down from 5,93,314 in the previous quarter. This is the second straight quarter in which the company has reported a net fall in headcount.
Kunnumal stressed that the company was not chasing a specific count. According to him, exits happen only when there is a clear and genuine reason.
TCS Q3 Performance
The Indian IT giant reported a sharp decline in profit for the December quarter, weighed down by one-time provisions, even as revenue posted modest growth.
TCS’s consolidated profit after tax (PAT) fell 13.9% year-on-year (YoY) to Rs. 10,657 crore in Q3FY26, compared to Rs. 12,380 crore in the year-ago period. Sequentially, profit dropped 11.7% from Rs 12,075 crore in the September quarter.
Implementation of Strict Rules by TCS
TCS has changed various workplace rules in recent times. The company has tightened its work-from-office requirements. Reports suggest several employees missed annual appraisals as they failed to meet the mandatory office attendance requirements.
Internal communication reviewed by media warned that continued non-compliance with office attendance could even lead to employees missing out 2026 performance rating cycle.
Also Read: TCS Layoffs: Forced Resignations and ‘Fluidity List’ Spark Fear Among Employees
Final Thoughts
TCS is undergoing an extensive restructuring in response to the ongoing AI revolution. This shift is coming at the cost of its human workforce. The organization also revealed that every termination will be backed by a valid reason and handled through a defined internal process.
According to a recent report by Oxford Economics, a majority of job cuts in recent months are an attempt by companies to eliminate non-performers, also focusing on reduced costs.
TCS employees are now more anxious than ever following this layoff news, tighter office attendance rules, and delays in appraisals.
