Tata Consultancy Services (TCS), India’s largest IT services firm, plans to cut 12,000 people or around 2% its workforce over the next year.

This decision will impact primarily mid- and senior-level positions, with junior staff largely unaffected, according to CEO K Krithivasan.

Krithivasan highlighted the importance of being adaptable as TCS integrates new technologies, including AI.

While AI was not directly linked to the layoffs, the CEO noted that the company is deploying AI at scale and reevaluating the skills necessary for future growth.

As of June 2025, TCS employed around 613,000 people globally.

Affected employees will receive severance packages, salary during the notice period, extended health insurance, and outplacement assistance, according to the CEO.

Despite the planned layoffs, TCS reported a net increase in headcount during the April–June 2025 quarter, adding over 5,000 employees.