TCS Shares Fall Nearly 2% After Announcing Layoffs of 12,000 Employees

New Delhi, July 28 – Shares of Tata Consultancy Services (TCS) declined close to 2% on Monday following the company’s announcement to lay off approximately 12,000 employees this year, primarily impacting employees in middle and senior management. The move is to be considered as part of a global workforce restructuring.

Stock Reacts to Layoff Announcement

TCS shares slipped as much as 1.80% to ₹3,079.20 apiece on the BSE, emerging as one of the top laggards in the Nifty IT index. The investors reacted to the company’s workforce restructuring plans amid global uncertainty.

12,261 Jobs to Be Cut Globally

India’s largest IT services firm confirmed that around 2% of its 6.13 lakh global workforce – equating to 12,261 employees – will be impacted by the decision. The majority of the layoffs will affect mid- and senior-level employees.

The company, which added 5,000 employees in the June quarter (Q1FY26), said the layoffs are part of a broader transformation to evolve into a “future-ready organisation.”

Strategic Realignment Amid Weak Tech Demand

TCS stated that the workforce reduction is aligned with its strategic focus on technology investments, AI deployment, market expansion, and employee reskilling. The company is undertaking multiple initiatives to upskill and redeploy talent, but noted that “deployment may not be feasible” for some roles.

“In such cases, we will be releasing associates from the organisation,” the statement said, adding that TCS will provide support, counselling, outplacement services, and appropriate benefits to affected employees.

Industry-Wide Slowdown Adds Pressure

The layoff announcement comes amid a tough macroeconomic environment. Indian IT majors have reported muted, single-digit revenue growth in Q1FY26, as global economic and geopolitical uncertainties have slowed tech spending and delayed client decisions.

TCS’s move signals a sharper focus on operational agility as the sector navigates evolving demand dynamics and a shifting global technology landscape.

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