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India's largest IT firm, Tata Consultancy Services (TCS), has announced plans to lay off around 12,000 employees in its 2026 financial year. This latest job cut will primarily affect middle and senior-level employees and is part of the company's strategy to transform and prepare for the future.
These layoffs represent approximately 2% of TCS's global workforce, which currently exceeds 600,000 employees. The decision aligns with significant changes happening in the global IT sector.
Advanced technologies, particularly artificial intelligence, are transforming the way work is done today. TCS has announced that the company is already retraining and relocating employees to different departments.
Additionally, TCS is investing in new technologies, utilizing AI for both its own operations and those of its clients. However, some positions have become redundant as a result.
This scenario has led to the decision to lay off employees. The Indian IT leader has stated that it is managing these changes carefully to ensure that customers continue to receive quality service.
The company will assist employees affected by the recent changes. This support will include severance pay, extended insurance coverage, and career transition assistance.
TCS CEO K. Krithivasan has shared that this was a difficult decision, emphasizing the necessity to build a stronger and more innovative company.
The latest announcement comes at a time when the Indian IT sector is facing uncertainty, as firms are investing less in new technology projects amid weak demand and global economic concerns. These factors have hindered growth for most IT companies.
Also Read: Microsoft Layoffs 2025: Up to 9,000 Jobs Cut, Xbox Studios Affected
The recent layoffs at TCS highlight significant changes occurring in the technology sector. These decisions aren't simply a matter of cutting costs; they represent a much broader transformation within the industry.
Artificial intelligence is a major factor driving change in the job market. AI is now capable of performing many tasks that were traditionally handled by humans, particularly in areas such as simple or routine work. As a result, employers like Tata Consultancy Services are looking for a new set of skills in potential employees.
They are looking for individuals who can effectively work with emerging technologies, including AI. This shift has a profound impact on the future of IT jobs in India, as some traditional roles are becoming less relevant.
TCS is actively working to shape the future and become more responsive to change. By eliminating certain positions, the company can hire individuals with new skill sets and invest more heavily in cutting-edge technology.
This approach helps the IT giant remain competitive, as customers increasingly demand better prices and more streamlined services. Utilizing Artificial Intelligence allows companies to meet these evolving requirements.
The job cuts highlight the significant impact that technology is having on the workforce. While this is a challenging time for many workers, it serves as a warning that companies must adapt to survive in a rapidly changing environment.
