India’s largest IT services firm, Tata Consultancy Services (TCS), is witnessing a noticeable uptick in job-seeking activity among its employees following the company’s announcement to lay off 12,000 staffers—approximately 2% of its global workforce—in fiscal 2026.
Executive search firms and recruitment agencies have confirmed a rise in queries and resume submissions from mid- and senior-level professionals, many of whom are preparing for career transitions amid growing uncertainty.
The layoffs, which primarily target roles in legacy technologies, non-client-facing functions, and middle management, have prompted employees to proactively explore external opportunities, even before formal exit processes begin.
Recruitment Firms See Early Movement from TCS
Executives at leading HR firms such as Transearch, CIEL HR, Michael Page, and TeamLease Digital have reported increased engagement from TCS employees.
According to Puneet Malhotra, Senior Partner at Transearch India, the firm has been receiving CVs from senior TCS executives for the past two quarters, anticipating the restructuring move.
“We are already engaged in searches for a few of the senior executives at TCS,” Puneet said, noting that many of these professionals have over 20 years of experience and command salaries around ₹1 crore annually.
Neeti Sharma, CEO of TeamLease Digital, added that while the flow of resumes remains consistent with previous weeks, the nature of queries suggests that many employees are in the early phase of transition.
“As the process unfolds and more clarity emerges, we may see movement, but it’s too early to draw any trend lines,” Neeti said.
Internal Churn and Attrition Trends
Industry sources indicate that TCS has experienced significant internal churn over the past two months, with a mix of voluntary and involuntary attrition.
In July alone, over 1.5 lakh employees reportedly began actively searching for jobs on platforms like Naukri.com, reflecting widespread concern across the company’s workforce.
The layoffs have also sparked broader discussions about job security in the Indian IT sector, especially for professionals over the age of 45.
Many employees are now reassessing their career paths, financial planning, and skill development strategies.
Industry Implications and Talent Mobility
TCS staffers actively searching for new jobs are beginning to create ripple effects across the IT recruitment landscape.
HR firms anticipate increased demand for career transition services, executive coaching, and placement support for displaced professionals.
The movement of experienced talent may also benefit mid-sized IT firms, startups, and global capability centers looking to strengthen their leadership pipelines.
While TCS maintains that the layoffs are driven by skill mismatches and deployment challenges, rather than automation or AI-led productivity gains, the restructuring has nonetheless triggered a wave of pre-emptive career planning among its employees.
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