TCS, India's largest IT services company, to lay off over 12,000 employees this year! Check details

Reacting to the news, shares of TCS and other large-cap IT services companies slipped in the trade on Monday, July 28.

Last seen, the TCS stock was trading 1.16% lower at ₹3,099.30 on the NSE.

As of June 30, 2025, TCS's workforce stood at 6,13,069. It increased its workforce by 5,000 employees in the recently concluded April-June quarter.

The move is part of the company's broader strategy to become a "future-ready organisation," focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement.

"TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model.

"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year," it said.

TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, it added.

The layoff decision comes at a time when India’s top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat-sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making.

TCS Q1 FY26 Results

The company on Thursday, July 10, reported a net profit of ₹12,760 crore in the first quarter of the current financial year, marking an upside of 6% from ₹12,040 crore in the same period last year.

On a sequential basis, TCS' net profit advanced 4.38% from ₹12,224 crore. The profit numbers were better than HSBC estimates, as analysts at HSBC were expecting the country's third-largest company by market capitalisation to report a net profit of ₹11,925 crore.

The company's operating margin in the first quarter expanded by 30 basis points to 24.5%.

TCS MD and Chief Executive K Krithivasan recently said the company is experiencing a "demand contraction" due to the continued uncertainties on the macroeconomic and geopolitical fronts, and added that he does not see a double-digit revenue growth in FY26.

Krithivasan explained the delays in decision-making experienced in the preceding quarter have "intensified" now, and hoped for the discretionary spends - a prime mover of revenue growths for IT companies - would return once the uncertainties ebb.