India’s largest IT company to trim workforce by 2% in FY2026, focusing on middle and senior management roles
Tata Consultancy Services (TCS), India’s largest IT services provider, announced on Sunday that it will reduce its workforce by approximately 12,000 jobs in the 2026 financial year. The job cuts, representing about 2% of its total headcount, will mainly affect middle and senior-level employees.
The move comes as TCS adapts to shifting market dynamics, including the integration of artificial intelligence (AI) and expansion into new global markets.
📉 Why Is TCS Cutting Jobs?
TCS cited several reasons for the workforce reduction:
- Delays in client decision-making and project initiation
- Slowdown in global tech spending due to weak demand and inflation
- Rising uncertainty over US trade policies
- The company’s ongoing pivot to AI and digital technologies
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” said the company in an official statement.
🔁 Retraining and Redeployment Initiatives
To manage the transition responsibly, TCS is:
- Retraining employees for emerging technology roles
- Redeploying staff across newer markets and service verticals
- Prioritizing a smooth shift without affecting client operations
🧠 AI and Automation: The Next Phase for TCS
TCS is investing heavily in:
- Artificial Intelligence (AI) tools and platforms
- Cloud technologies
- Data analytics and automation solutions
These investments are part of a broader effort to remain competitive in a rapidly changing global IT landscape.
💬 CEO’s Viewpoint
Earlier this month, TCS CEO K Krithivasan acknowledged that:
“There were delays in client decision-making and project starts.”
These delays have been affecting the company’s growth and triggering a need to streamline operations.
🔎 Context: Indian IT Sector Under Pressure
India’s $283 billion IT sector is facing:
- Stagnant global IT budgets
- Reduced discretionary tech spending
- Lingering effects of inflation and geopolitical instability
TCS is not alone — several major Indian IT firms have also paused hiring or announced slowdowns in recent quarters.
✅ Key Takeaways
- TCS to cut 12,000 jobs (2% of workforce) by FY2026
- Cuts focus on middle and senior management roles
- Driven by AI integration, global slowdown, and market shifts
- No impact expected on client services
- TCS continues to invest in retraining and new technologies
