Mumbai, July 29: Tata Consultancy Services (TCS), India’s largest IT services company, said on Sunday it will cut about 12,200 jobs — or 2% of its workforce — during the 2026 financial year as part of a strategic shift involving new technology, artificial intelligence, and entry into new markets.
The layoffs will primarily impact middle and senior management roles, the company said, while adding that it is simultaneously retraining and redeploying staff to align with evolving client needs. “This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS said in a statement.
The move comes amid slowing global demand for IT services, with clients deferring non-essential technology spending due to inflationary pressures, economic uncertainty, and ongoing concerns over U.S. trade policies.
TCS Chief Executive K Krithivasan had earlier this month acknowledged delays in client decision-making and project kick-offs, signalling near-term headwinds for the $283 billion Indian IT industry.
The retrenchment marks one of the largest workforce reductions at TCS in recent years and follows broader trends in the global tech sector, where companies are increasingly automating operations and pivoting toward digital-first models.
