Tata Consultancy Services (TCS), India’s largest IT services company, saw its workforce decrease by approximately 24,000 employees in fiscal year 2026. The company has announced the completion of its restructuring-driven layoffs and affirms that campus hiring remains on track.
What happened
TCS's workforce reduction occurred over the past fiscal year, which the company attributes to restructuring, stricter bench policies, and voluntary departures, particularly among mid-to-senior-level employees. Despite the overall decrease, TCS added 2,356 employees through lateral and fresher hiring.
How many employees affected
The company ended FY26 with 584,519 employees, a reduction of 23,460 from the previous year. While TCS had earlier indicated it would reduce about 2% of its workforce, the company did not attribute the entire reduction to the restructuring program.
Why layoffs happened
The workforce adjustments were part of a restructuring program involving tighter utilization norms, which contributed to voluntary exits across roles. TCS leadership frames the shift as an operational reset amidst changing client demand patterns and increasing adoption of automation and AI-led delivery models.
Company background
TCS is a multinational IT services and consulting company headquartered in Mumbai, India. It is the largest IT service provider in India. The company is publicly listed and part of the Tata Group.
Industry impact
The Indian IT services sector is currently recalibrating workforce strategies in response to evolving client needs and the rise of automation and AI. TCS's approach reflects a broader trend of companies optimizing their workforce composition while continuing to invest in entry-level talent.
What's next
TCS plans to continue hiring approximately 40,000 freshers annually. The company's near-term focus is on stabilizing operations while maintaining a robust entry-level talent pool. TCS has already made around 25,000 campus offers in India.
Source: peoplematters.in