Indian IT companies firm Tata Consultancy Companies (TCS) has introduced its intention to cut back its workforce by 2% in response to AI-driven disruptions and macroeconomic uncertainties.
This resolution will result in roughly 12,200 job cuts, Reuters reported, citing an organization assertion. The reductions will primarily have an effect on center and senior administration workers.
“This transition is being deliberate with due care to make sure there is no such thing as a impression on service supply to our purchasers,” TCS stated.
As of June 2025, TCS had greater than 610,000 workers.
The announcement got here because the Indian IT sector, valued at $283bn, is experiencing related challenges. Shoppers are reportedly delaying non-essential expertise spending as a consequence of weak demand, persistent inflation, and uncertainties surrounding US commerce insurance policies.
Earlier in July 2025, TCS chief govt Ok Krithivasan additionally famous that consumer decision-making and mission initiations are going through delays.
The restructuring effort is aimed toward remodeling the corporate right into a future-ready organisation.
“This consists of strategic initiatives on a number of fronts, and whereas these modifications are crucial for our development and evolution, we perceive the impression on our colleagues. We thank them for his or her service and are dedicated to supporting them by this transition,” The Occasions of India quoted Krithivasan as saying in an e-mail to workers.
The corporate is at present specializing in deploying AI and different applied sciences whereas exploring new markets and managing an unpredictable demand panorama.
In June 2025, TCS introduced the institution of three new services in Europe to bolster its presence within the software-defined autos sector. This consists of two automotive supply centres in Germany, situated in Munich and Villingen-Schwenningen, and an engineering facility in Romania.
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