In a major development shaking the Indian IT sector, Tata Consultancy Services (TCS) announced a 2% workforce reduction — roughly 12,000 jobs — as part of a restructuring drive to become a “future-ready organisation.” However, reports from IT unions and employees suggest the actual number could be as high as 30,000, sparking widespread speculation.
What TCS Said
TCS clarified that reports of 30,000 layoffs were “incorrect and misleading.” In a statement to Livemint, the company reiterated that only 2% of its workforce will be impacted, with the job cuts focused mainly on middle and senior-level roles. It added that the restructuring includes reskilling and redeployment initiatives aligned with its AI and technology-led growth strategy.
What Employees and Unions Claim
Contradicting the company’s stance, IT unions claim over 10,000 affected employees have contacted them since June, and that the total job losses could exceed 30,000. They allege that TCS is asking employees to resign voluntarily instead of terminating them, which means these exits may not reflect in official layoff data but rather in attrition figures.
Bigger Picture: Future-Readiness vs Workforce Impact
TCS had first announced the layoffs on July 25, 2025, as part of a broader plan to restructure operations, enhance AI capabilities, and improve efficiency. While the company argues that the move is necessary to remain competitive in a changing tech landscape, the growing disconnect between official figures and employee claims has raised concerns about transparency and job security in India’s largest IT firm.
With speculation mounting, industry analysts believe that TCS — like many global tech companies — is likely preparing for a leaner, AI-augmented workforce, potentially leading to deeper workforce changes in the coming quarters.
