TCS to Cut 12,000 Jobs in Largest-Ever Layoff Move

In a historic move, Tata Consultancy Services (TCS) announced today that it will be laying off approximately 12,000 employees, marking the largest layoff in its history. Although TCS is laying off almost 12,000 employees worldwide, the company describes the layoffs as a major restructuring initiative based on well-established factors in digital demand.

Executives and insiders at TCS indicate that job eliminations will occur in support roles, non-billable roles, and non-performing businesses across various locations. CEO K Krithivasan recognised that this restructuring was a necessary task and was not taken lightly, yet he communicated that TCS would continue to work with the employees, informing them about the layoffs.

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TCS is one of India’s largest management consulting firms, employing more than 600,000 people. The restructurings were broadly designated as necessary reorganisations as TCS continues to adjust to the pace of increasing activity in a high-growth digital space. TCS is now shifting its delivery and investment in new high-demand services, including further investment in cloud computing, artificial intelligence (AI), and other related areas, such as cybersecurity, which will enable TCS to renew its employee base with fresh roles.

While the announcement regarding future layoffs generated anxiety from the approximately 450,000 workforces in India working in the IT sector as to the likelihood of additional layoffs taking place, this latest restructuring will enable TCS to create a renewed optimism in both TCS and the global tech environment that it invests in, in terms of sustaining long term growth, building capabilities, and share investment in innovation overall.