TCS to lay off over 12,000 employees amid AI-led technology disruptions

Tata Consultancy Services (TCS) is set to lay off around 2% of its workforce—roughly over 12,000 employees—over the year, reports suggest. The move comes amid macro uncertainties and AI-led technology disruptions continuing to affect business demand.

As of the end of June, the Mumbai-headquartered Tata subsidiary employed a workforce of 6,13,069.

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In a statement, the company said it is on a journey to become a future-ready organisation.

“As part of this journey, we will also be releasing associates from the organisation whose continued deployment may not be feasible. This will affect about 2% of our global workforce, primarily at the middle and senior levels, over the course of the year,” the IT giant said.

“This transition is being planned with due care to ensure there is no impact on service delivery to our clients. We understand that this is a challenging time for our colleagues who may be affected. We thank them for their service, and we will be making every effort to provide appropriate benefits, outplacement guidance, counselling, and support as they transition to new opportunities,” it added.

Notably, the software services companies in India have a cumulative revenue of over $283 billion. They remain the largest private sector employers, with TCS being the largest.

TCS made the layoff decision after several employees filed legal complaints against the company’s recently tweaked employee bench policy.

The policy allows employees only 35 non-deployment days per year and requires them to maintain at least 225 billable days annually.

TCS has announced its comprehensive strategic approach, which includes investments in emerging technologies, market expansion, large-scale AI implementation for clients and internal operations, strengthening partnerships, developing advanced infrastructure, and restructuring its employment framework.