The layoff story at TCS is now front and center in India’s IT narrative. In July 2025, TCS announced plans to reduce its workforce by ~12,000 employees—roughly 2% of its global workforce of ~613,000. The cuts focus largely on middle‑ and senior‑management. The aim: to become a future‑ready, AI and tech‑aligned organisation.
Why Is TCS Letting Go 2%?
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Skill mismatch: CEO K. Krithivasan emphasised that layoffs reflect mismatches in deployment feasibility more than direct AI efficiency gains.
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Cost pressure: Analysts estimate job cuts could improve margins by ~4%, representing ~12% of TCS’s net profit in FY25.
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Global slowdown: Weak client budgets and delayed decisions have hit demand, especially in North America, prompting staffing rationalisation.
Middle Management Takes the Brunt
| Employee Level | Estimated Impact | Reason |
|---|---|---|
| Middle management | Majority of 12,000 layoffs | Legacy project skills, low deployment feasibility |
| Senior management | Significant proportion | High cost, low adaptability |
| Junior / entry level | Largely unaffected | Greater flexibility, upskillable |
TCS clearly stated that middle and senior grades are most affected, not junior staff.
What Does TCS Offer Affected Employees?
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Severance packages, outplacement support and counselling to impacted associates.
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They will roll out benefits including notice‑period pay, extended health cover, and job transition assistance.
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However, unions like NITES are urging workers not to resign under pressure and challenging the policy.
Broader IT Trends Warn of Ripple Effects
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This is the largest-ever layoff in India’s IT sector, with widespread concern that other major players could follow.
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Uncertainty over automation, AI and bench policy tightening is stoking anxiety across the industry.
Real‑World Examples & Lessons
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Infosys, in contrast, reaffirmed no layoffs. It plans to hire ~20,000 fresh graduates and reskill over 275,000 staff in AI & cloud, showing resilience through reinvestment.
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Accenture in 2023 cut ~2.5% of workforce and tightened margins; investors welcomed the move. TCS aims for similar financial discipline.
Actionable Insights for Professionals
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Reskill aggressively: Upskilling in AI, cybersecurity, cloud, big data is critical. TCS reportedly trained 500,000+ employees; you must follow suit.
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Stay billable: With newer bench policies, employees must secure deployment within 35 days or risk termination.
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Diversify skills: Transition from waterfall/legacy methods to agile, product‑oriented models.
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Networking matters: Join industry forums, tech meetups and upskill communities to stay market‑relevant.
Conclusion
The massive workforce reduction at TCS in 2025, affecting ~12,000 middle and senior managers, signals a seismic shift in India’s IT sector. Far more than cost cutting, it reflects deeper structural changes driven by AI, automation, global demand slowdown, and rising per-employee costs. For employees, the key is to adapt swiftly through reskilling, staying billable, and embracing future tech. Firms like Infosys show that reinvestment in young talent and AI readiness can be a sustainable alternative.
Call to Action
If you’re a mid‑career professional in tech:
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Take control of your upskilling journey today.
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Seek training in AI, cloud, data, cybersecurity.
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Prepare your alternate career network, including freelancing, startups, or other tech firms.
👉 Start your learning path now—future‑proof your career before it’s too late.