TCS Layoffs 12000 Employees in July 2025
TCS Layoffs 12000 Employees in July 2025
Tata Consultancy Services (TCS), India’s largest IT services company, has laid off 12,000 employees globally in July 2025. This strategic move represents around 2% of the company’s global workforce. The layoffs are a result of an accelerating shift towards Artificial Intelligence (AI) and automation, reshaping how the tech industry operates and the kind of skills it now demands.
About TCS
Tata Consultancy Services (TCS) is a global leader in IT services, consulting, and business solutions. Headquartered in Mumbai, India, TCS operates in over 46 countries with more than 600,000 employees. The company provides a wide range of services including software development, cloud computing, artificial intelligence, and enterprise solutions to major clients across industries.
Layoffs Affecting 2% of Global Workforce
The 12,000 employees impacted constitute approximately 2% of TCS’s worldwide workforce. Most of those affected belong to mid-level and senior-level roles, particularly in areas where automation and AI technologies are reducing the need for manual and repetitive tasks.
Reason Behind the Layoffs: The AI Tech Shift
The rapid adoption of AI technologies has significantly altered the IT services landscape. As clients increasingly demand AI-driven solutions, companies like TCS are realigning their workforce to match new technological needs. Traditional IT roles—especially those involving legacy systems and manual testing—are being replaced by AI-powered automation, analytics, and machine learning tools.
Mid and senior-level employees, many of whom were experts in older technologies, are finding it challenging to transition to modern AI-based tools quickly. As a result, the company is prioritizing reskilling and hiring professionals with AI, cloud, and data analytics expertise.
What TCS CEO Said About the Layoffs
In a recent statement, TCS CEO K. Krithivasan said, “This is a strategic transformation aimed at aligning with future technologies. The demand for AI, cloud, and data science skills has surged, and we must evolve accordingly. While these decisions are difficult, they are necessary to ensure we continue to deliver value to our clients in a fast-changing digital world.”
He also mentioned that TCS will be investing in training programs and encouraging internal talent mobility to support reskilling wherever possible.
Top FAQs
- Q: Why is TCS laying off employees?
A: TCS is laying off 12,000 employees due to a shift towards AI and automation, which is changing the skill sets needed in the tech industry. - Q: Who is affected by the layoffs?
A: Most of the layoffs involve mid-level and senior-level employees, particularly those in roles that are being automated. - Q: Is TCS in financial trouble?
A: No, TCS remains financially strong. The layoffs are part of a strategic restructuring, not due to financial issues. - Q: Will TCS hire again?
A: Yes, TCS plans to hire professionals skilled in AI, cloud computing, and data science to meet future demand. - Q: What is TCS doing to help the affected employees?
A: TCS has indicated it will support reskilling and offer internal job mobility options, though some roles may still be eliminated permanently.
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