Tata Consultancy Services completes workforce restructuring with 8,000 job cuts, below initial estimates

Tata Consultancy Services (TCS) has concluded its year-long workforce restructuring programme, resulting in approximately 8,000 job reductions—lower than the initially projected 12,000.
The restructuring initiative, announced in July 2025, was designed to align the company’s workforce with evolving technology demands. At the time, TCS had indicated that around 2% of its global workforce—then exceeding 600,000 employees—could be affected, particularly in mid-level and senior roles.
The process was completed in the third quarter of FY26, with total restructuring costs amounting to ₹1,388 crore. The workforce reduction occurred in phases, including about 6,000 exits in one quarter, followed by the remaining reductions in subsequent months.
TCS stated that reskilling was a key focus throughout the exercise. Employees were offered opportunities to transition into roles aligned with emerging technologies, with separations occurring primarily where redeployment was not feasible.
As part of its broader operational shift, the company is revising its hiring model—moving from a traditional bench-based system to a demand-driven approach linked more closely to project requirements.
This shift is also reflected in campus hiring trends. In FY26, TCS recruited around 44,000 fresh graduates and currently has visibility for an additional 25,000 hires. Across the IT sector, companies are increasingly prioritising efficiency, leading to higher utilisation rates and leaner bench strength.
Demand for talent is now concentrated in areas such as artificial intelligence, machine learning, data analytics, cloud computing, and cybersecurity. Entry-level professionals with these skills are seeing stronger compensation compared to traditional IT roles.
Despite the restructuring, TCS reported a net addition of over 2,300 employees in the latest quarter, bringing its total headcount to more than 584,000. Attrition stood at 13.7%, slightly above the company’s preferred range, reflecting ongoing changes in the IT employment landscape.
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