Tata Consultancy Services (TCS) has refuted claims of a planned workforce reduction, asserting that recent employee exits are a result of natural attrition and performance-based evaluations rather than a targeted downsizing effort. Speaking during the company’s Q2 FY25 earnings call, Chief Human Resources Officer Sudeep Kunnumal confirmed that the company has no fixed target for cutting jobs.
“The reduction is an outcome of both voluntary and involuntary attrition. We continue to evaluate each employee based on learning and development investments,” Kunnumal said.
20,000 Reduction Not a Planned Exercise
TCS reported a net headcount reduction of around 20,000 employees in the July–September quarter, sparking speculation about large-scale layoffs. However, Kunnumal clarified that this figure reflects normal workforce churn. As of September 2025, the company’s total headcount stood at 593,314.
Attrition in Q2 FY25 was 13.3%, slightly higher than the 12.3% recorded a year ago but lower than the 13.8% in the previous quarter.
AI and Automation Reshaping Workforce Structure
TCS acknowledged that AI adoption and automation are transforming its workforce dynamics, especially affecting mid and senior-level employees who are unable to secure suitable roles. Benched staff are likely to face closer evaluation in the coming months. Despite this shift, Kunnumal assured that all exits are being managed “with a lot of care.”
Support for Departing Employees
TCS is offering severance packages, counselling, and outplacement assistance to employees leaving the company. “The severance packages we provide are above industry benchmarks,” Kunnumal noted. During the September quarter alone, the company spent ₹1,135 crore on severance payments.
Subdued Financial Performance in Q2 FY25
TCS posted a 1.4% year-on-year rise in net profit to ₹12,075 crore, while revenue from operations grew 2.4% to ₹65,799 crore. The modest growth reflects ongoing global uncertainty and the tech sector’s continued adjustment to AI-driven disruption.
