TCS to cut over 12,000 jobs in FY26 amid AI pivot and tech transition

New Delhi: Tata Consultancy Services (TCS), India’s largest IT services firm, is planning to reduce its workforce by around 2% equivalent to more than 12,000 jobs, during the financial year 2025–26, according to a report. The downsizing is expected to largely affect employees in middle and senior management roles.

The move comes as the Tata Group company accelerates investments in artificial intelligence (AI), enters new markets, and retools operations to align with changing technology and client needs.

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

Earlier this month, during the company’s Q1 earnings call, Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO), stated that the total workforce at the end of the first quarter stood at 6,13,069.

 “Net attrition during the quarter was over 5,000 employees. We have honoured all the job offers, and we’ll do so for the rest of the year. Lateral hiring will be recalibrated based on the demand outlook,” he said.

Lakkad also noted that TCS is investing in upskilling to remain relevant amid evolving customer demands. “In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills. Our LTM attrition in IT services was at 13.8 per cent at the end of Q1, up 50 bps sequentially,” he added, as per an exchange filing.

TCS Chief Executive Officer K Krithivasan also highlighted the company’s focus on artificial intelligence and efficiency during the quarter. “During the quarter, enterprises remained focused on cost optimisation, vendor consolidation and efficiency-led technology transformation. Discretionary spend continues to remain under heightened scrutiny and pressure. However, enterprises focused on scaling AI adoption across applications, workflows and data performance remains strong,” Krithivasan said.