After Microsoft, TCS Decides To Lay Off Employees In Thousands

In what could spread anxiety among techies, India’s largest IT services provider Tata Consultancy Services (TCS) has decided  to reduce its workforce by two per cent which means over 12,000 jobs, in the 2026 financial year. This major lay off decision comes within days of global tech giant Microsoft had already slashed 15,000 jobs this year. The latest drive was implemented in early July when over 9,000 staff were laid off.

Microsoft CEO Satya Nadella even sent a heartfelt note to those employees whose jobs were eliminated. Not just Microsoft, even many other companies in the sector cut around 80,000 positions in 2025 alone. The companies are cutting down the jobs mainly due to their recalibration in an AI-first world.

The TCS has decided to cut the jobs in the middle and senior management levels. The company is also retraining and redeploying staff as it is making investment in new technology and moving to new markets, including AI. However, the 12,200 jobs will be cut. The company said that it is taking care to ensure their service delivery to the clients would not be affected.

TCS CEO Krithivasan said that the attrition is mainly because their ways of work are changing. New technologies like AI and other changes are being brought into the company for which we need to be ready, he said.

Reacting to the decision, many outsiders feared that if TCS is laying off, then what would be the situation of other IT companies. A few others felt that the AI threat is not at a distance but is already existing.