Hyderabad: The Indian IT industry is currently experiencing a wave of layoffs, shaking the confidence of employees in the sector. According to recent shocking reports, Tata Consultancy Services (TCS), the country’s largest IT company, is planning large-scale layoffs this year.
Notably, the company had hired 5,000 new employees in April, but it is now looking to reduce its global workforce and plans to lay off over 12,000 employees in 2025. Reports suggest that the affected employees will be mid-to-senior level professionals. This decision comes as part of the company’s large-scale restructuring efforts.
Why TCS is conducting layoffs:
As of June 30, 2025, Tata Consultancy Services (TCS) has a total of 613,069 employees, which the company plans to reduce. The company states that these layoffs are part of its strategy to prepare for the future, which includes investments in technology, artificial intelligence (AI), and expansion into new markets.
The company plans to lay off around 2% of its global workforce, approximately 12,000 employees. TCS has assured that affected employees will receive benefits, relocation assistance, counseling, and support.
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The company stated that TCS is on a journey to become a future-ready organization. This involves several strategic initiatives, such as investing in new technologies, entering new markets, large-scale AI adoption for clients and itself, deepening partnerships, building next-generation infrastructure, and realigning its workforce model.
TCS’s statement on layoffs:
Looking at the data, India’s top IT companies have been facing the biggest slowdown in business growth in recent years, including the results of the first quarter of FY2026. The reason behind this is global uncertainty and war-like situations in several countries, which are affecting tech demand and delaying client decisions.
For Tata Consultancy Services (TCS), revenue in the June quarter increased by 1.3% year-on-year to ₹63,437 crore, while net profit rose by 5.9% to ₹12,760 crore. The company’s CEO, K. Krithivasan, stated that the company is facing declining demand, primarily due to these global uncertainties. Not just TCS, Microsoft has also laid off over 15,000 employees in 2025, accounting for nearly 7% of its global workforce.
