TCS to Cut 12,000 Jobs—What Happens Next for the Employees Facing the Axe?

In one of the biggest shakeups in the IT industry world, Tata Consultancy Services (TCS) is going to lay off 12,000 workers which is about 2% of its global workforce by the end of March 2026. This is a big change for India's largest IT services company, which has long been seen as a safe place to work in a turbulent business.  But what is the reason for this change, who will be affected, and what help (if any) is available for people who lose their jobs.

Why is TCS firing people? 

According to the media reports, the layoffs are part of a strategic realignment. This is not just because of AI, but also because of tech disruption, tighter client budgets, and stricter internal standards.  K. Krithivasan, the CEO, said that this was the hardest choice he had ever had to make. Even while AI wasn't listed as the main cause, automation, moving to the cloud, and changing client expectations have made some jobs unnecessary, especially those that use old technology and don't bill clients. 

Who's the Most Affected? 

The cuts are already happening and will continue through FY26. They will hurt mid- and senior-level personnel the most, especially those who have been with the company for 10 years or more.  The job roles that are most at risk include managers who don't deal with clients, project managers in old technology, and employees who have been on the bench for a long time. 

What’s Changing

One of the main causes for the layoffs is a new internal bench policy that makes it harder for staff who don't bill to work.  Here's what's new: Employees must work at least 225 billable days a year. Only 35 days of unassigned (bench) time is allowed. Anyone who goes over that time could lose their job. Bench employees must be in the office and complete daily upskilling hours.  Critics believe this change has put a lot of stress on people and made it hard for them to move around inside the company. 

What Do Employees Who Are Affected Get? 

TCS has put together a severance package for affected employees that includes: full pay for the notice period, a three-month payout in some cases, extended insurance coverage, career counselling, and help finding a new job. The company has also said it will try to find other jobs for employees within other Tata Group companies, but there is no guarantee. 

What Is Missing? 

The package looks good on paper, but many employees are still unsure about their long-term career path and some benefits are not clear about who is eligible for them. There hasn't been any specific information about retraining programs or timelines for rehiring yet, which makes people wonder how "future-ready" the support really is.

Not Just a Story About India 

This is a layoff that affects people all throughout the world, not just in India.  Employees in all parts of the business and in all parts of the world, from North America to Europe, are affected.  This change by TCS is part of a larger trend in the industry: instead of job security, people are now relying on their skills to stay alive. Companies are having to make tough choices as AI, automation, and changing business models change the norms of IT jobs.  And workers, even those who have been with the company for a long time, have to adjust quickly or risk being left behind. At the moment, 12,000 people are dealing with the effects of that change. 

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