Tata Consultancy Services has decided to reduce its workforce by 12000 employees during the current financial year. This move will impact nearly 2 percent of its global workforce of over 613000. The company stated that the layoffs are not a result of automation but stem from a skills mismatch. Although TCS trained thousands of employees in digital technologies such as cloud computing and artificial intelligence, many failed to transition into client-ready roles. As the business shifts focus, the company plans to align its workforce with current project demands.

TCS is moving rapidly toward a more agile and product-focused model. This structure demands quicker delivery, smaller teams, and enhanced technical capabilities. Therefore, the company is phasing out roles that do not meet the new criteria. Most of the affected employees work in mid or senior-level positions. However, a small number of junior staff without active project assignments may also face exits. To support them, TCS has offered severance pay, insurance extensions, counselling, and job placement assistance. In some cases, the company will attempt to reassign or reskill employees where appropriate.

The market responded immediately after the announcement, with TCS shares falling by nearly 2 percent. Other Indian IT majors, including Infosys and Wipro, also recorded minor dips. Analysts believe this move signals a broader trend in the IT sector as firms respond to global pressure for faster, more efficient service. To maintain its leadership, TCS plans to invest more in emerging technologies and build a digitally fluent workforce. By embracing this transition, the company hopes to deliver better value to clients and strengthen its long-term position in a rapidly changing industry.