Tata Consultancy Services (TCS), India’s largest IT services exporter, has confirmed plans to cut 2% of its global workforce — amounting to over 12,000 jobs. The move is part of a broader restructuring strategy aimed at realigning the company’s operational model to current market dynamics, client demands, and internal efficiency goals.

According to internal sources, the reduction spans multiple geographies and is likely to affect mid-level employees the most, particularly those in support and non-billable roles.

Slowing Demand in IT Sector Triggers Workforce Optimisation

The global IT industry has been witnessing a deceleration in client spending, especially from key markets like the U.S. and Europe. With enterprises focusing on cost optimization, digital transformation spending has plateaued. TCS’s decision reflects this trend as the firm recalibrates its human resource needs in line with project-based hiring and emerging technologies like AI, cloud computing, and cybersecurity.

TCS Ensures Support for Affected Employees

TCS stated that the layoffs will be executed with transparency and compassion. Employees affected by the downsizing will receive severance packages, career transition support, and access to upskilling opportunities. The company has also announced plans to continue hiring freshers and tech talent for critical roles aligned with digital priorities.

Management Perspective and Future Outlook

CEO K. Krithivasan emphasized that while the layoffs are unfortunate, they are essential to sustaining long-term competitiveness and delivering value to clients. “We remain committed to our employees and will continue to invest in future-ready talent. This realignment enables us to respond with greater agility to client expectations,” he added.

Despite the layoffs, TCS projects moderate growth for the upcoming quarters, backed by deals in AI transformation, cloud migration, and financial services.

Industry Experts Weigh In

Analysts say this marks one of the largest job cuts by TCS in recent history, signaling a shift in the traditional hiring-heavy model followed by Indian IT giants. With increasing automation and AI integration, companies like TCS are moving toward leaner, more agile operations that rely on fewer but highly skilled professionals.

Conclusion: A Turning Point for TCS and the IT Sector

As TCS joins the list of global tech firms cutting jobs, the move serves as a wake-up call for the Indian IT sector to innovate its workforce strategies. With technology evolving rapidly, the focus now shifts to adaptability, upskilling, and reconfiguring teams to meet future demands.