TCS to cut 2% of global workforce in mid and senior level roles over next 12 months

Tata Consultancy Services (TCS), India’s largest IT services provider, has announced plans to reduce its global workforce by approximately 2% over the next year as part of a broader transformation aimed at becoming a “Future-Ready” organisation.

In a statement shared with CNBC-TV18, TCS said the decision is part of a strategic shift involving multiple initiatives, including investments in emerging technologies, expansion into new markets, large-scale deployment of artificial intelligence (AI), and a revamp of its infrastructure and workforce model.

#JustIn @TCS to cut 2% of global workforce, primarily in the middle and senior grades, over the course of the year @CNBCTV18News @CNBCTV18Live #TCS #Tech #CNBCTV18Market #Tata

— Shereen Bhan (@ShereenBhan) July 27, 2025

“As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year,” the company said.

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The steps will include investing in new technology, entering new markets, deploying AI at scale for clients and internally and realigning its workforce.

At 6 lakh employees, the move could impact 12,000 employees.

The reduction is expected to affect employees across international markets, with a particular focus on mid and senior-level roles. TCS has emphasised that the move will not impact its ability to deliver services to clients and that the transition is being handled with care.

“We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,” the company explained.

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TCS has also highlighted that various reskilling and redeployment programmes have already been initiated as part of this transformation, aimed at aligning its workforce with future-focused capabilities.

The announcement comes amid a broader shift within the global IT services industry, as companies increasingly prioritise digital transformation, AI integration, and operating efficiency.