TCS Layoffs 2025:
Why 12,000+ Employees Are Being Let Go
Tata
Consultancy Services (TCS), India’s biggest IT company, is making
headlines again, this time for a difficult decision that affects over 12,000
employees. In July 2025, the company confirmed that it plans to
reduce its workforce by about 2%, mainly targeting mid- and senior-level employees. But what’s causing this major
shake-up?
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What's Causing the Layoffs?
1. AI
and Automation Are Taking Over
TCS is going all-in
on Artificial
Intelligence (AI) to stay ahead in the game. While this means
faster and more efficient work, it also means some jobs—especially those that
can be automated—are becoming unnecessary. CEO K. Krithivasan mentioned that
the company is now focusing on future-ready skills, and roles that don’t fit
into this new model are being phased out.
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2. Economic
Challenges and Cost Pressure
Global economic uncertainty
is impacting clients’ budgets. Many are asking for 20–30% price cuts,
which is forcing TCS to cut costs and optimise
operations. Trimming down the workforce is, unfortunately, part of that.
3. Skills
Gap
Even though TCS has
invested in up-skilling (like clocking 15 million hours of AI training in Q1
2025), some employees are still struggling to fit into new-age tech roles.
Redeployment hasn’t worked for everyone, especially for people in roles no
longer in demand.
4. Tougher
“Bench” Policy
Since June
12, 2025, TCS has introduced a stricter bench
policy. If you're not assigned to a project within 35
days, you risk losing your job. That’s been a major contributor
to the layoffs, especially for those in between assignments.
5. Strategic
Reshuffling
TCS is reshaping its
entire workforce to be more agile, future-ready, and innovation-focused. That
means moving investments to AI, cloud, and digital services,
and unfortunately, letting go of roles that no longer align with this strategy.
Who’s Affected and How?
🔻 1. Job Loss and
Financial Pressure
More than 12,000
employees will be impacted between April 2025 and
March 2026. While TCS has promised severance
packages, job placement help, and extended health insurance,
the reality remains tough for those involved.
⚠️ 2. Stress and Mental
Pressure
Employees are
speaking out on forums like Reddit, expressing their anxiety about the new
bench policy, sudden job switches, and a lack of project
clarity. A workers’ rights group even called the policy “inhumane.”
🔄 3. Tough Career
Transitions
Many senior
employees—some with 10–15 years of experience—are
struggling to find new roles. Being asked to shift to different domains or
locations isn’t easy, especially at later stages of their careers.
🔒 4. Decline in Job
Security Image
TCS used to be
considered one of the most stable employers in India—some even joked it was
like a “government
job in the private sector.” That image has taken a hit, and
people are now more cautious than ever.
🛑 5. Complaints and
Past Concerns
There are ongoing
allegations from previous years, including claims of age discrimination
and lack
of proper notice before termination. TCS has denied these
claims, but the concerns remain fresh in employees' minds.
The Bigger Picture
·
TCS Workforce: 613,000+ as of June
2025. The 2% cut = ~12,200 jobs.
·
IT Sector Trends: Hiring is down
across the board, and AI/automation is
playing a major role in workforce cuts at companies like Infosys and Wipro, too.
·
Attrition Rate: TCS saw a 13.8%
attrition in Q1 2025, with fewer people being hired than ever
before.
·
Public Reaction: Many online are
calling the layoffs a “red flag”, especially
for freshers and juniors hoping to join TCS. Others advise reskilling quickly
for a changing job market.
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Final Thoughts
The tech industry is
going through a massive transformation, and TCS’s layoffs are just one sign of
a larger shift. AI is reshaping the workplace, economic factors are squeezing
budgets, and companies are being forced to adapt fast. While TCS is trying to
handle the layoffs with care, the emotional and financial impact on thousands
of families is very real.
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