TCS To Slash 2% Of Global Staff By 2025: Could You Be On The List? Internal Email Raises Eyebrows

India’s largest IT services company, Tata Consultancy Services (TCS), has formally communicated to its employees the decision to release approximately 12,000 employees—about 2% of its global workforce—over the course of FY26.

The confirmation came through an internal email sent to employees on July 27, 2025, which was reviewed by Republic Business.

Layoffs Not Linked to AI-Led Productivity Gains, Says CEO
The company had earlier announced the layoffs publicly on Sunday, with CEO and Managing Director K. Krithivasan clarifying that the decision was not driven by automation or AI-related efficiency boosts.

“This is not because of AI delivering 20% productivity gains. We are not doing this due to automation,” Krithivasan said in a media interaction. “The layoffs are primarily due to skill mismatches or situations where we have not been able to deploy someone effectively.”

TCS Email Details the Rationale Behind Layoffs
The internal communication, titled “TCS is on a journey to become a future-ready organisation,” outlined several reasons for the workforce realignment. Key focus areas include AI and data, cybersecurity, cloud, IoT, and enterprise software.

Read More - Tech Layoffs 2025: What’s Fueling Cuts At TCS, Intel, and Microsoft?

Who is on the Radar?

The company is also looking to deepen partnerships, explore new markets, and scale AI for both internal and client-facing functions.
“As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the email read. “This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year.”

TCS acknowledged the emotional and career impact of the move and assured affected employees of comprehensive support.
“We understand that this is a challenging time for our colleagues who are likely to be affected. We thank them for their service and will be making all efforts to provide them with appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,” the email stated.

Focus on Future-Readiness and Growth Momentum
TCS said it is taking a “decisive” approach to reshaping its workforce model as part of its transformation into a future-ready organisation. The email stressed that the layoffs are one piece of a broader workforce strategy that includes reskilling and redeployment.
 

“While this is a difficult decision, it reflects our continued responsibility as an organisation to anticipate future needs and act decisively,” it said. “Let us come together to support each other as we build a future-ready organisation and accelerate our growth momentum.”

The move comes at a time when global IT spending is shifting rapidly towards high-value, tech-driven services, and Indian IT majors are recalibrating talent pools to align with changing demand patterns.