Tata Consultancy Services (TCS), the country and the world’s veteran IT company, have announced to cut 12,261 employees worldwide this year. This step will mainly affect mid and senior level employees. According to PTI news, by 30 June 2025, the total number of employees of the company was 6,13,069. The special thing is that TCS has also recruited 5,000 new employees in the April-June quarter this year.
Initiative towards creating a future-Reddy Organization
Tata Consultancy Services said in its statement that the decision is part of the long-term strategy to create a “Future-Reddy Organization” to the company. Under this, the company is investing in new technologies, widespread use of Artificial Integration (AI), admission to new global markets and restructuring workforce. The company said that we are preparing ourselves and our clients for the future by adopting new techniques and AI. Under this process, some employees will be freed from the company whose re -enhancement is not possible.
Such employees will be assisted
The TCS also clarified that the affected employees will be provided economic benefits, outplacing support, counseling and other assistance. This move of TCS has come to light at a time when the top IT companies of the country are registering a weak growth rate in the first quarter of FY 2025-26. Due to global economic uncertainty and geopolitical tensions, customers are delaying taking decisions, affecting projects.
Q1fy26 performance of TCS
The Tata Consultancy Services recorded a total revenue of ₹ 63,437 crore in the first quarter of the current financial year (2025-26), which shows an increase of 1.3% annually. During this period, the company’s profit was recorded at ₹ 12,760 crore, which is an increase of 5.9% on an annual basis. The company’s MD and CEO K.K. Kritivasan recently stated that the existing situations see a decline in demand, and FY26 is likely to have less digit growth.
The rest of the tech companies are also trimmed
Apart from TCS, Microsoft has also trimmed more than 15,000 employees in the year 2025, which is about 7% of its total workforce. According to data.fyi data, more than 80,000 employees have been trimmed in 169 tech companies so far in 2025. This figure was 1.5 lakh in the year 2024. Experts believe that the increasing influence of AI behind these cuttings, possibility of recession, and strategy to reduce the cost of companies are major reasons.
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