Tata Consultancy Services (TCS), India’s leading IT services company, on Sunday announced that it will reduce its global workforce by 2 per cent in the financial year 2026, which spans from April 2025 to March 2026. The move will affect nearly 12,200 employees, mostly from middle and senior management roles. TCS CEO K. Krithivasan described the decision as “one of the toughest” he had to make.
“The ways of working are changing. We need to be future-ready and agile,” he said, adding that the company is deploying artificial intelligence (AI) at scale and is reassessing the skills it will need in the coming years. The job cuts come at a time when TCS is focusing on adopting AI and other advanced technologies across its operations. These changes are reshaping the demand for IT services globally.
The company is also dealing with an uncertain market environment as it expands into new regions. As of June 2025, TCS had a total workforce of 6.13 lakh employees worldwide. With technology evolving rapidly, the company is investing in large-scale AI deployment and upskilling its workforce. Over 1.14 lakh employees have already been trained in advanced AI skills.
During the April-June quarter alone, employees spent 15 million hours learning about new and emerging technologies. This announcement comes shortly after TCS posted its financial results for the first quarter (Q1) of FY26. The company reported a net profit of Rs 12,760 crore, a 6 per cent increase compared to the same period the previous year, according to its stock exchange filing.
Its revenue from operations also rose by 1.3 per cent to Rs 63,437 crore. TCS declared an interim dividend of Rs 11 per share. While announcing the quarterly earnings, Krithivasan said that despite the challenging global economic and geopolitical environment, the company’s performance remains steady due to strong deal wins and growing demand for new-age services.
He also highlighted the company’s continued investment in the AI ecosystem, including infrastructure, data platforms, and business applications.
Source – sarkaritel.com
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