Why did TCS lose 23,000 staffers? HR breaks silence...
The company stated that its layoff cycle is complete, and the drop in headcount is not solely because of last year’s restructuring, which impacted 2% of its workforce.
- Apr 15, 2026,
- Updated Apr 15, 2026 2:43 PM IST
Tata Consultancy Services (TCS) headcount reportedly dropped more than 23,000 in fiscal year 2026. According to its Q4 results, the IT services company has 584,519 employees, down by 23,460 in comparison to last year.
On the employee number drop, TCS CHRO Sudeep Kunnumal provided clarity on the difference in numbers to Times of India, claiming that it is not due to the restructuring that took place last year. Kunnumal said, “Last year, we onboarded 44,000 trainees. We have already made 25,000 campus offers in India and will continue to be among the largest recruiters across universities and the market.” The company also stated that its hiring plans will further depend on the growing demand.
He also stated that TCS onboarded 2,356 employees sequentially during the latest period, which included both experienced and freshers. The company also stated that its layoff cycle is complete, and the drop in headcount is not solely because of last year’s restructuring, which impacted 2% of its workforce. Kunnumal did not reveal TCS hiring targets for FY27, but it has announced annual salary hikes for employees across all grades and roles.
There are claims that the IT services industry could become irrelevant by 2030, but TCS CEO K Krithivasan rejects the statement, saying companies will increasingly depend on firms like TCS to fully use and benefit from AI. He also highlighted a strong deal pipeline, mega deals in progress, and improved international revenue.
In terms of performance, TCS Q4 results showcased a 12% rise in net profit to Rs 13,718 crore in the March quarter, with a revenue increase by 9.6% to Rs 70,698 crore. Therefore, its recovery is steady amid the growing AI race.
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Tata Consultancy Services (TCS) headcount reportedly dropped more than 23,000 in fiscal year 2026. According to its Q4 results, the IT services company has 584,519 employees, down by 23,460 in comparison to last year.
On the employee number drop, TCS CHRO Sudeep Kunnumal provided clarity on the difference in numbers to Times of India, claiming that it is not due to the restructuring that took place last year. Kunnumal said, “Last year, we onboarded 44,000 trainees. We have already made 25,000 campus offers in India and will continue to be among the largest recruiters across universities and the market.” The company also stated that its hiring plans will further depend on the growing demand.
He also stated that TCS onboarded 2,356 employees sequentially during the latest period, which included both experienced and freshers. The company also stated that its layoff cycle is complete, and the drop in headcount is not solely because of last year’s restructuring, which impacted 2% of its workforce. Kunnumal did not reveal TCS hiring targets for FY27, but it has announced annual salary hikes for employees across all grades and roles.
There are claims that the IT services industry could become irrelevant by 2030, but TCS CEO K Krithivasan rejects the statement, saying companies will increasingly depend on firms like TCS to fully use and benefit from AI. He also highlighted a strong deal pipeline, mega deals in progress, and improved international revenue.
In terms of performance, TCS Q4 results showcased a 12% rise in net profit to Rs 13,718 crore in the March quarter, with a revenue increase by 9.6% to Rs 70,698 crore. Therefore, its recovery is steady amid the growing AI race.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine