AI, Layoffs & 12,000 Jobs: TCS Share Price Today Slides - Here’s The Full Story

Tata Consultancy Services (TCS), India’s largest IT services exporter, saw its share price drop by 1.7% in early trading on Monday, following the company’s announcement of a 2% workforce reduction over the course of 2025.

The move—expected to impact around 12,000 employees globally—comes amid economic uncertainty and the accelerating impact of AI-driven technological disruptions on business operations.

TCS Share Price Today

Today on NSE, the IT company share price opened at Rs 3,110.00 and went a low as Rs 3,081.60, and at the moment of writing this story, the stock is trading at Rs 3,091.10, down by 44.70 pts or -1.43 %.

Similar trend is on BSE, the stock opened at Rs 3113.00 and went a low as Rs 3081.20, and at the moment of writing this story, the stock is at 3092.8,0 down by 41.55 pts -1.33%.

Nifty IT Index Down

The nifty IT is also down today by 1%, major laggards are TCS, Wipro, Infosys, HCL Tech and Tech Mahindra.

What's behind the fall?

Shares of Tata Consultancy Services (TCS) dropped today after the IT giant announced plans to lay off approximately 12,000 employees—about 2% of its global workforce—over the course of this year. The announcement was made on Sunday by TCS CEO and Managing Director K. Krithivasan.

In a media interaction, Krithivasan clarified that the decision was not driven by AI-led productivity gains.
“This is not because of AI delivering 20% productivity gains. We are not doing this due to automation,” he said. “The layoffs are primarily due to skill mismatches or situations where we have not been able to deploy someone effectively.”

He emphasised that the company is still committed to hiring and training quality talent. “This is not about needing fewer people. We will continue to acquire, train, and invest in talent. This move is more about deployment feasibility,” he added.

The layoffs will largely impact mid-level and senior employees, as TCS restructures to become a more "future-ready organisation."

According to media reports, the company will offer affected employees notice period compensation, severance packages, extended insurance coverage, and career transition support.

As of the end of the June 2025 quarter, TCS employed 613,069 people globally. The job cuts come amid a wider slowdown in the Indian IT industry, which is facing a hiring freeze and pushback against new internal policies, including TCS’s updated bench policy. The revised policy caps non-project days at 35 per year and requires a minimum of 225 billable days.

This move also follows delays in onboarding over 600 lateral hires, reflecting larger trends across the global tech industry.

TCS Share Price Target

Citi has reiterated its “sell” rating on Tata Consultancy Services (TCS), setting a target price of Rs 3,135. The brokerage cited several concerns behind its cautious stance, including margin pressure, weak demand, a mismatch in skills, and rising productivity expectations.

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