Tata Consultancy Services (TCS), India’s largest IT services firm, has confirmed that it is releasing mid and senior-level employees who are unable to find roles aligned with their experience and seniority.
The company’s Chief Human Resources Officer, Sudeep Kunnumal, emphasized that the process is being handled “with a lot of care,” and clarified that the restructuring is not driven by any fixed layoff target.
Context: Restructuring Amid Market Shifts
The announcement comes amid broader changes in the IT industry, where companies are recalibrating their workforce strategies in response to automation, AI-led disruptions, and evolving client demands.
TCS had earlier announced plans to reduce its global workforce by 2%—approximately 12,000 employees—over the course of the year. As of October 2025, the company has released nearly half of that number.
Sudeep stated that the restructuring is part of a continuous evaluation process and not a reactionary measure.
“We are not chasing a number,” he said, adding that the company is focused on aligning talent with business needs rather than implementing blanket layoffs.
Who Is Affected: TCS Mid and Senior-Level Employees
Despite internal efforts, the company has not redeployed some mid and senior-level employees into roles that match their skills and seniority, and is now releasing them.
Sudeep explained that the company carefully considers these decisions and does not base them on performance.
“As we speak today, we are close to one percent of people that we have released in mid and senior levels,” he said.
The company clarified that people have ‘extremely exaggerated’ the numbers circulating in public suggesting layoffs of 50,000 to 80,000 employees.
The company stated that people should disregard such figures.
Headcount and Attrition Trends
TCS reported a net reduction of nearly 20,000 employees in the July–September quarter. The company’s total headcount stood at 593,314 as of September-end.
Attrition during the second quarter of FY25 was 13.3%, slightly down from 13.8% in Q1 FY25. However, it remained higher than the 12.3% recorded in Q2 FY24.
The company continues to invest in reskilling programs and internal mobility initiatives to retain talent. These efforts help reduce the need for external hiring.
However, in cases where redeployment is not feasible, the company offers structured exits.
TCS Approach: Structured and Respectful Exits
TCS has reiterated that it is conducting the release of employees with sensitivity.
The company is providing structured severance packages and supporting affected employees through transition services.
The company’s HR leadership has stressed that it carefully considers these decisions. They are part of a broader effort to maintain organizational agility.
Sudeep noted that the company will continue to evaluate roles and workforce alignment on an ongoing basis.
He emphasized that the company will make all decisions in line with business priorities and employee dignity.
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