Tata Consultancy Services is going to cut about 2% of its global workforce, as of June 30, 2025, the total number of employees of the company was 6,13,069, who will be affected?

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The country’s and the world’s leading IT company Tata Consultancy Services (TCS) has announced to cut 12,261 employees worldwide this year. This move will mainly affect mid and senior level employees. According to PTI news, the total number of employees of the company as of June 30, 2025 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 making a future-ready organization
Tata Consultancy Services said in its statement that this decision is part of the long-term strategy to make the company a “future-ready organization”. Under this, the company is investing in new technologies, extensive use of Artificial Intelligence (AI), entering new global markets and restructuring the workforce. The company said that we are preparing ourselves and our clients for the future by adopting new technologies and AI. Under the same process, some employees will be released from the company whose redeployment is not possible.

Such employees will be provided assistance
TCS also clarified that the affected employees will be provided financial benefits, outplacement support, counseling and other assistance. This move of TCS has come at a time when the country’s top IT companies are registering weak growth rates in the first quarter of FY 2025-26. Due to global economic uncertainty and geopolitical tensions, there is a delay in taking decisions by customers, affecting projects.

TCS Q1FY26 performance
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. The company’s profit during this period was recorded at ₹ 12,760 crore, which is an increase of 5.9% year-on-year. The company’s MD and CEO K. Krithivasan recently said that the current situation is seeing a decline in demand, and double-digit growth is unlikely in FY26.

Layoffs in other tech companies too

Apart from TCS, Microsoft has also laid off more than 15,000 employees so far in the year 2025, which is about 7% of its total workforce. According to data from Layoffs.fyi, more than 80,000 employees have been laid off in 169 tech companies so far in 2025. This figure was 1.5 lakh in the year 2024. Experts believe that the increasing impact of AI, fear of recession, and cost-reduction strategies of companies are the major reasons behind these cuts.