Team siliconindia

• TCS will reduce its workforce by 2% (around 12,200 roles) in FY26, mainly affecting middle and senior management.
• The move is part of TCS’s shift toward AI, new technologies, and market realignment.
• Weak global demand, project delays, and cautious client spending are driving the restructuring.

Tata Consultancy Services (TCS), India’s largest IT services firm, announced plans to cut approximately 12,200 jobs or 2% of its workforce during the 2026 financial year, citing strategic restructuring and a shift towards AI and emerging technologies.

The layoffs will primarily affect middle and senior management roles, the company said in a statement on Sunday. While TCS is retraining and redeploying talent in new markets and AI-based services, the reduction is part of a broader operational overhaul.

“This transition is being planned with due care to ensure there is no impact on service delivery to our clients”, TCS assured.

The move comes amid broader challenges facing India’s $283 billion IT sector, which is grappling with delayed client decisions, weakened demand, and inflationary pressures. Global uncertainties, including U.S. trade policy shifts, have also led to a pullback in non-essential tech spending.

Also Read: TCS Revenue Miss Sparks IT Sell-Off Amid Global Trade Worries

TCS CEO K Krithivasan recently acknowledged that project delays and cautious client spending continue to hamper growth in key markets.

The job cuts mark a significant shift for TCS, which has historically maintained stable employment even during downturns, highlighting the growing impact of automation and AI on traditional IT roles.