India's largest IT services company, Tata Consultancy Services (TCS), is planning to reduce its workforce by around 2%. Chief Executive K Krithivasan revealed the plan in an interview with MoneyControl and framed the decision as part of a broader strategy to make TCS “more agile and future-ready” in the face of rapid technological changes.
When asked why the company relies on staff cuts, Krithivasan explained that the industry itself is transforming. He said that the way we work is changing and that every company has a requirement to be prepared and agile for the future to succeed.
He said, “We've been calling new technologies like AI and operational models.” He said the company is deploying AI on a large scale, carefully assessing the skills needed in the future. “We've invested a lot in terms of how we can provide associates with opportunities to grow and develop their careers,” he added. However, he acknowledged that “relocation was not effective” in certain areas, which led to the decision to reduce the role.
As of June 2025, TCS employs 6,13,000 people worldwide. The 2% reduction amounts to approximately 12,200 jobs. The CEO emphasized that layoffs focus primarily on middle management and senior levels, rather than junior staff. Krithivasan was keen to dispel the notion that artificial intelligence was layoffs. “This is not for AI, it's about dealing with future skills,” he told MoneyControl. “This is about feasibility in deployments, not because fewer people need it.”
Nevertheless, analysts argue that AI is quietly reshaping demand for the sector. When automation requires roles such as manual testing, many senior employees find it difficult to accommodate emerging technologies. In summary, this is not just the case with TCS. Over the past two years, leading players in the world of corporate world have eliminated roles and replaced them with AI automation. And like TCS, this is not something that a single company deals directly with.
Back in the upcoming layoff wave of TCS, the CEO confirms that the company will provide retirement packages, notice period pay, extended health insurance to affected employees, and repeal assistance.
“This is not an efficient drive. We want to ensure that associates seek projects and stay productive throughout the year, and that they can stay productive in search of projects,” Krithivasan said.
Putting aside the looming cuts, TCS actually raised its workforce between April and June quarter of FY2025, adding 6,071 new employees. Net-based, the company's staff increased by 5,090 over the same period. But future layoffs show a shift in focus. The future of TCS identifies its vast talent pool not just to align the skills required by the rapidly changing technology landscape, but rather to the skills required by the rapidly changing technology landscape.
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