Mega job cut in 2025 :::: TCS to lay off 12,000 employees due to AI shift; mid, senior level staff impacted ::::: “We have been calling out new technologies like AI"

(TCS actually grew its workforce during the April–June quarter of FY25, adding 6,071 new employees. On a net basis, the company’s headcount rose by 5,090 during the same period. 

The upcoming layoffs, however, mark a shift in focus – signalling that for TCS, the future lies in aligning its vast talent pool with the skills demanded by a rapidly changing technology landscape rather than sheer numbers.)

In a major setback to job-market in India, Tata Consultancy Services (TCS) is planning to fire nearly 12,000 employees over the next year. 

Chief Executive K Krithivasan confirmed that this layoff will majorly affect mid- and senior-level staff employees.  

India’s largest IT services firm, Tata Consultancy Services (TCS), is set to shrink its workforce by about 2 per cent, a move that will affect over 12,000 employees, mostly at the middle and senior levels, over the next year. 

Chief Executive K Krithivasan revealed the plans in an interview with Moneycontrol, framing the decision as part of a broader strategy to make TCS “more agile and future-ready” in the face of rapid technological shifts.  

TCS to cut workforce by 2 per cent, affecting over 12,000 employees

While he did not address it directly, TCS CEO hints AI automation is the reason behind this layoff wave 

When asked why the company was resorting to headcount reduction, Krithivasan explained that the industry itself is transforming. He said that the ways of working are changing, and for every company to succeed, there’s a requirement to be future-ready and agile.

He said, “We have been calling out new technologies like AI and operating model changes.” 

According to him, the company has been deploying AI at scale while closely assessing the skills it will need going forward. 

“We have invested a lot in associates in terms of how we can provide them with career growth and deployment opportunities,” he added. However, he admitted that in certain areas “redeployment hasn’t been effective,” which has led to the decision to cut roles.

Reports say As of June 2025, TCS employed 6,13,000 people worldwide. A 2 per cent reduction equates to roughly 12,200 jobs. 

The CEO stressed that the layoffs will be focused largely on middle management and senior levels, rather than junior staff. Krithivasan was keen to dispel the notion that artificial intelligence is directly to blame for the layoffs. “This is not because of AI but to address skills for the future,” he told Moneycontrol. “This is about feasibility in deployment, not because we need less people.” 

Despite this, analysts argue that AI is quietly reshaping demand in the sector. As automation reduces the need for roles such as manual testing, many senior employees have found it challenging to keep pace with emerging technologies. 

To recap, this is not just the case with TCS. For the last 2 years, big players in the corporate world have been eliminating roles and replacing them with AI automation. And just like TCS, not a single company addresses this directly.