India’s biggest IT services company, Tata Consultancy Services (TCS), is set to decrease its staff by around 2 %, a move that will affect over 12,000 employees at the center and senior levels. Chief Executive K Krithivasan found out the plans in an interview, framing the selection as a part of a broader approach to make TCS “more agile and future ready” in the face of fast technological shifts.
TCS Lay off 12,000 employees, Shift by AI
When asked why the company was resorting to a reduction, Krithivasan defined that the company itself is remodeling. He said that the ways of working are changed, and for each employer to succeed, there’s a demand to be future-ready and agile.
He said, “We were calling out new technology like AI and working models changes.” According to him, the organisation has been deploying AI at scale whilst carefully assessing the skills it’ll need going ahead. “We have invested loads in friends in terms of the way we will provide them with career growth and deployment opportunities,” he said. However, he said that in some areas “redeployment hasn’t been effective,” which has caused the decision to reduce roles.
2 % Employees reduction in Tata Consultancy Services Co.
As of June 2025, TCS hired 6,13,000 people worldwide. A 2 % reduction equates to kind of 12,200 jobs. The CEO stressed that the layoffs focused on center management and senior staff, instead of junior staff. Krithivasan was keen to dispel the belief that artificial intelligence is immediately to blame for the layoffs. “This isn’t always because of AI however to address abilities for the future,” he said.
Despite this, analysts argue that AI is quietly reshaping the demand for in the sector. As automation reduces the need for roles including testing, many senior personnel have discovered it tough to keep pace with rising technologies.
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