TCS layoffs: Who’s at risk as 12,000 roles face the axe globally

TCS is cutting 12,000 jobs globally in its largest-ever workforce shakeup, targeting mid- and senior-level employees as the company responds to tech disruption, tighter client budgets, and a stricter internal bench policy.

Tata Consultancy Services will lay off 2% of its 613,000-strong workforce by March 2026—marking a historic shift for a company long seen as a symbol of job security in Indian IT.

The cuts are already underway and will continue over the financial year. The layoffs primarily affect mid- and senior-tier staff, especially those with over a decade of experience. Roles at highest risk include non-client-facing managers, project leads, and legacy tech specialists whose skills no longer match evolving business needs.

While artificial intelligence isn’t the sole driver, the company cites a broader “strategic realignment” as automation, cloud migration, and client demands reshape delivery models. TCS leadership said efforts were made to reskill and redeploy staff, but not all transitions were feasible.

A revised internal bench policy has added further pressure. Employees must now clock at least 225 billable days annually, with a strict 35-day limit on unassigned time. Exceeding this threshold could lead to job loss and even denial of experience letters. Employees on bench are required to be present in office and complete daily upskilling hours.

“This is the toughest decision of my career,” said CEO K. Krithivasan. He stressed that the move is not about AI or cost-cutting, but about preparing the company to stay agile and relevant. “We want to be future-ready.”

The layoffs are not limited to India. Staff across global business units are being affected. Severance support includes full notice period salary, extended insurance, career counseling, and reports of an additional three-month payout in many cases.

This restructuring marks the largest layoff in TCS’s history and reflects broader shifts across the IT sector, where stable career paths are giving way to sharper skill alignment and relentless margin pressures.