TCS Layoffs 2025: Over 12,000 Jobs Cut in Major Restructuring Citing Skill Mismatch, Not AI
TCS Layoffs 2025: Over 12,000 Employees Affected as Company Cites Skill Mismatch Over AI Mumbai, July 27, 2025 – India’s largest IT giant Tata Consultancy Services (TCS) has confirmed that it will lay off over 12,000 employees globally in the financial year 2025–26. This amounts to nearly 2% of its workforce, making it one of the most significant restructuring efforts in the company’s history. 🚨 Why Is TCS Laying Off Employees? According to TCS CEO K Krithivasan, the layoffs are not related to AI or automation, but due to a skill mismatch. The company is transforming its workforce structure to meet future digital demands and realign talent with project requirements. “This is not driven by margins or AI replacing jobs. It is about ensuring we have the right people in the right roles,” said Krithivasan. 🎯 Who Will Be Affected? A new internal policy also mandates 225 billable days/year. Employees failing to meet this target may be at risk. 🤝 What Support Will TCS Provide? Despite the large cuts, TCS is offering full support to those affected: The HR team states the layoffs are being handled with “dignity and transparency”. ⚖️ Unions React: Layoffs “Unjustified” Indian IT employee unions have strongly criticized the move. They claim: Unions like FITE have urged affected workers to document communications and not resign under pressure. 📉 TCS Shares Drop Amid Market Uncertainty Following the layoff news, TCS shares fell by 1.7%, signaling investor concern over: 🌐 Industry Insight The layoffs are part of a broader trend in the IT industry where firms are: Other tech companies like Infosys and Wipro are also restructuring in similar ways. 📊 Summary: Key Points on TCS Layoffs 2025 Topic Details Total Jobs Cut 12,000+ globally (2% of workforce) Reason Skill mismatch, not AI Who’s Affected Mid-level managers, bench employees CEO’s Statement “Not AI-driven; focused on role alignment” Support Measures Severance, career counseling, insurance, notice pay Union Stand Opposes move; demands government attention Market Impact TCS shares fell 1.7% 📌 Conclusion TCS’s layoffs in 2025 highlight the growing need for upskilling, adaptability, and digital readiness in India’s IT sector. While the company ensures support for the affected staff, the decision raises deeper concerns about job security in an AI-driven future. tcs layoffs 2025, TCS job cuts, IT layoffs India, skill mismatch TCS, TCS firing news, TCS employee reaction, AI in IT industry, TCS restructuring 2025, IT sector layoffs