TCS Stock Dips After Mass Layoff Announcement; Company Says Not About Cost-Cutting

The IT giant which has a total headcount of 6.13 lakh employees as of June 2025, plans to implement the layoffs across various domains and geographies.

In a statement, the company said the layoffs would primarily impact middle and senior grades.

Source : Ambition Boz

Shares of tech major Tata Consultancy Services (TCS) were trading lower on Monday, following the company's announcement to lay off around 12,200 employees in FY26.

The share had slipped 1.7 per cent to an intra-day low of Rs 3,081 on BSE. India's largest IT exporter on Sunday announced plans to lay off around 2 per cent of its global workforce.

The IT giant which has a total headcount of 6.13 lakh employees as of June 2025, plans to implement the layoffs across various domains and geographies. In a statement, the company said the layoffs would primarily impact middle and senior grades.

TCS CEO K Krithivasan described the decision as “one of the toughest” he had to make and said it is aimed at making the company "future-ready and agile" in the face of rapidly evolving technologies and workplace models.

The company is offering severance packages, extended insurance, notice period pay, and placement assistance in finding alternative job opportunities, according to the reports.

TCS said that the layoffs are not motivated by cost-cutting or automation, but rather by the challenges of redeploying talent whose current roles no longer align with the company's evolving skill requirements. The IT giant is currently focusing on large-scale deployment of artificial intelligence (AI) and other new technologies, which are reshaping demand across the IT sector.

Amidst these changes, analysts believe that roles like manual testing are shrinking, and some senior professionals are struggling to adapt to newer, tech-driven environments.

The IT giant recently announced a net profit of Rs 12,760 crore for Q1 FY26, up 6 per cent YoY. Revenue from operations rose 1.3 per cent to Rs 63,437 crore during this quarter. The company also declared an interim dividend of Rs 11 per share.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)