TCS Workforce Reduction: In a significant move that signals shifting priorities in the global IT sector, Tata Consultancy Services (TCS), India’s leading IT services firm, is planning a 2% workforce reduction in 2025, affecting approximately 12,000 employees. The decision, expected to primarily impact mid and senior-level professionals, reflects the company’s evolving strategy focused on artificial intelligence (AI), emerging technologies, and efficiency-led growth.
TCS Workforce Reduction: Why TCS is Cutting 2% of Its Workforce
According to a Reuters report, the TCS workforce reduction 2025 is part of a broader transformation that includes retraining and redeploying staff to align with the company’s new market strategies. As TCS integrates advanced technologies and AI into its services, certain roles are becoming redundant, especially at management levels.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS stated in its official communication, emphasizing that the company is approaching the shift with sensitivity and strategic foresight.
Reinventing Through AI and Upskilling
TCS is not simply cutting jobs—it’s reinventing itself. The company revealed that its associates collectively invested 15 million hours this quarter in building expertise in next-gen technologies. Over 114,000 employees now hold advanced AI skills, a number that is expected to grow as TCS focuses on enterprise-wide AI integration.
Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO), highlighted during the company’s earnings call that net attrition for the quarter stood at over 5,000 employees, with total headcount at 6,13,069. While the company has honored all campus job offers and continues to do so, lateral hiring will be recalibrated based on the evolving demand environment.
TCS Workforce Reduction: Client-Centric Transformation Amid Economic Pressures
CEO K Krithivasan shed light on the broader industry dynamics driving the decision. “Enterprises remain focused on cost optimization, vendor consolidation, and efficiency-led transformation,” he explained. While discretionary spending is under pressure, TCS continues to see strong demand for AI-led performance enhancements.
Krithivasan emphasized that TCS will continue to scale AI adoption across workflows, applications, and data ecosystems, ensuring it remains at the forefront of enterprise technology solutions.
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