TCS Says Employees Impacted by Job Cuts Are Receiving Support

Tata Consultancy Services (TCS) has stated that employees affected by its recent workforce realignment are being provided with appropriate care and support. The company is reducing around two per cent of its workforce in the 2026 financial year as part of a broader initiative to align employee skills with future business needs.
Reports earlier suggested that some long-serving employees whose skills no longer matched requirements were offered severance packages of up to two years’ salary. TCS has not confirmed these figures but reiterated that affected employees are receiving compensation and assistance in line with their individual circumstances.
The restructuring comes amid a slowdown in India’s IT sector, with global economic uncertainty, client cost-cutting, and delayed project decisions affecting growth. In July, CEO K Krithivasan noted that client decision-making and project starts were taking longer than anticipated.
On 1 October 2025, the Nascent Information Technology Employees Senate (NITES) claimed that about 2,500 TCS employees in Pune were forced to resign. TCS denied the allegation, calling it “inaccurate and purposefully mischievous,” and stated that only a limited number of employees were affected, all of whom received due support.
In July, the company also announced plans to retrain and redeploy staff while cutting about 12,200 roles to support expansion into new technologies and emerging markets.
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