TCS to Slash Over 12,200 Jobs in 2025 Amid AI Restructuring

TCS to cut over 2% of its workforce, as the tech giant retools for an AI-driven future and faces employee pushback.

Tata Consultancy Services (TCS), one of India’s largest tech firms, has announced a massive layoff. It will result in a workforce reduction of nearly 2%, affecting over 12,200 employees globally. The decision comes as TCS aggressively embraces Artificial Intelligence (AI) and prepares to enter new markets, amid an evolving demand in the IT landscape. In an official statement to The Economic Times, the company mentioned,

“This will impact about 2% of our global workforce, primarily in the middle and senior grades, over the course of the year.”

According to the company, the job reductions stem from multiple strategic shifts, including the deployment of AI at scale, restructuring of delivery models, and realignment of workforce models to meet emerging client needs. The company emphasized that the layoffs are not a result of performance decisions, but rather a consequence of changing operational priorities. Reuters mentions,

“12,200 jobs from the company’s workforce of more than 613,000 will be impacted as TCS deploys AI and other technologies while entering new markets and contending with an uncertain demand outlook.”

While acknowledging the gravity of the decision, TCS maintained that service delivery to clients would remain unaffected. It mentioned,

“This transition is being planned with due care to avoid any disruption in service delivery to our clients,”

What Does TCS Plan To Do For Employees Who Will Be Laid Off?

To support those affected, TCS is offering a comprehensive transition package, including notice period payments, severance packages, insurance benefit extensions, and career counseling services. The company is also partnering with third-party agencies to offer outplacement support. TCS said in an official note.

“We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,”

This announcement follows employee backlash over TCS's newly updated bench policy, which limits unassigned staff to just 35 non-billable days per year. Several legal complaints have already been filed against the company over this policy, highlighting growing tensions within India’s IT sector.

Global Tech Layoffs Cross 80,000 This Year

TCS’s move adds to a broader wave of job cuts sweeping across the global tech landscape. According to Layoffs.fyi, more than 80,000 employees across 169 companies have lost their jobs in 2025 alone.

Microsoft leads the chart with 15,000+ layoffs this year—around 7% of its global headcount. As reported by MobileAppDaily, it laid off around 9,000 employees early this month. Microsoft CEO Satya Nadella mentions,

“Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.”

Tech companies strive to stay competitive through innovation and cost control, and employees worldwide are feeling the pressure of this shift. That’s mainly because AI gains often come at the expense of human costs.