TCS Headcount Drops by Nearly 20,000 in Q2 FY26 Amid Strategic Restructuring

Tata Consultancy Services (TCS) has reported a significant decline in its workforce for the July–September 2025 quarter (Q2 FY26), marking one of the sharpest quarterly reductions in recent years. The IT major’s total headcount fell to 5,93,314 employees, down from 6,13,069 in the previous quarter, reflecting a net decrease of 19,755 employees.
According to the company’s Q2 FY26 fact sheet, the voluntary attrition rate rose to 13.3 percent, compared with 12.3 percent in the previous quarter. The decline in overall headcount, coupled with higher attrition, comes as TCS continues its strategic restructuring to improve operational efficiency and align its talent with evolving business priorities.
Following the results announcement, Sudeep Kunnumal, Chief Human Resources Officer (CHRO), TCS, stated that around one percent of the workforce — approximately 6,000 employees — were released as part of the restructuring process. He clarified that the exits primarily affected mid and senior management levels, and dismissed reports of large-scale layoffs as “exaggerated.”
Industry observers and employee groups, however, noted that the reduction reflects a mix of attrition, non-replacement hiring, and internal redeployment challenges. The Nascent Information Technology Employees Senate (NITES) confirmed the closing headcount and highlighted that the quarter’s drop of nearly 20,000 employees represents a notable contraction for India’s largest IT employer.
Earlier this year, TCS had signaled plans to trim around two percent of its global workforce — roughly 12,000 employees — primarily in mid-level and senior roles, even as it maintained a hiring target of over 40,000 for fiscal 2026.
The sharp decline in Q2 headcount underscores TCS’s cautious approach amid a challenging global technology environment, where muted client demand, delayed spending, and project rationalisation have pushed Indian IT firms to prioritise efficiency, role optimisation, and profitability over rapid workforce expansion.
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