TCS Shares Decline After Announcement of 12,200 Job Cuts

New Delhi: Shares of Tata Consultancy Services (TCS) traded lower on Monday after the company announced plans to lay off approximately 12,200 employees during the financial year 2025–26.

TCS shares fell by 1.7%, hitting an intraday low of ?3,081 on the BSE. The company, India’s largest IT services exporter, revealed on Sunday that it would reduce about 2% of its global workforce.

As of June 2025, TCS has a total workforce of 6.13 lakh employees. The layoffs are expected to span multiple domains and geographies, primarily affecting mid-level and senior employees.

TCS CEO K. Krithivasan described the move as "one of the toughest decisions" he has made, stating that it is part of the company’s effort to become “future-ready and agile” amid fast-evolving technologies and workplace transformations.

The company has said the layoffs are not driven by cost-cutting or automation, but by challenges in reassigning employees whose current roles no longer align with TCS’s changing skill requirements. The IT major is focusing on large-scale implementation of artificial intelligence (AI) and other emerging technologies, which are reshaping job demands across the industry.

TCS is offering severance packages, extended insurance benefits, notice period compensation, and job placement support to affected employees.

Industry analysts note that roles such as manual testing are becoming obsolete, and many senior professionals are finding it difficult to transition to newer, technology-driven roles.

Despite the workforce shake-up, TCS reported strong financials for the first quarter of FY26, posting a net profit of ?12,760 crore—up 6% year-on-year. Revenue from operations rose 1.3% to ?63,437 crore. The company also declared an interim dividend of ?11 per share.

With inputs from IANS