TCS to lay off over 12,000 employees in FY 2026 amid strategic shift to AI

This alteration is being executed with great caution. To ensure that the service offered to customers remains unaffected. “TCS CEO K Krithivasan mentioned in that we are advocating for new technologies, particularly AI and modifications in operating models.”

Mumbai: Tata Consultancy Services (TCS) plans to reduce its employee count by 2 percent in the fiscal year 2026. Over 12,000 workers are anticipated to be laid off. This downsizing will primarily impact the middle and upper management. The firm announced it is retraining and reallocating employees to explore new markets, invest in advanced technology, and adopt AI, but approximately 12,200 positions will be eliminated during this transition.

This alteration is being executed with great caution. To ensure that the service offered to customers remains unaffected. "TCS CEO K Krithivasan mentioned in that we are advocating for new technologies, particularly AI and modifications in operating models."

Methods of operation are evolving

We must get ready for what lies ahead. We are heavily leveraging AI and assessing the skills needed for the future. "Even with considerable investment in employee development and career options, we have determined that certain roles do not justify reappointment."

This will affect approximately two percent of our worldwide employees. It's a difficult choice. This has been among the toughest choices I’ve faced as CEO. He mentioned that we are undertaking this not due to AI but with the purpose of fostering future skills. This has been carried out due to the requirement for posts, not because we require fewer individuals.

What will happen with other firms?

There is much conversation regarding layoffs at TCS. An individual on X stated that TCS is reducing its workforce by 12,000 employees over the course of the year. If TCS is reducing its workforce, what will occur with the other IT firms? Another remarked that the danger posed by AI will no longer arise. It has arrived. The layoffs of staff by CS indicate that the job losses from AI automation are evident. The competition will rise and the salary will be less.

What advantages will be provided to individuals who become unemployed?