India’s IT giant Tata Consultancy Services (TCS) has made headlines yet again — and not for the reasons many had hoped. The company has officially confirmed that 12,000 employees will be laid off in 2025, marking one of the largest workforce reductions in its history. While the move has stirred anxiety among tech workers and the broader industry, TCS insists it’s part of a strategic restructuring aligned with emerging business needs.
But what’s really behind this massive decision? Let’s dive deep into the reasons, the reactions, and the road ahead.
The Shocking Announcement
On July 25, 2025, TCS CEO K. Krithivasan announced during a quarterly earnings call that approximately 12,000 employees across India and global locations would be let go. The move is expected to unfold in phases over the next two quarters. Though TCS has not issued a complete list of affected departments, sources say the layoffs will impact non-billable roles, mid-level project managers, and legacy tech specialists the most.
Why Is TCS Cutting Jobs in 2025?
While layoffs in the IT sector aren't new, the sheer volume in this round by TCS has raised eyebrows. The company has cited multiple factors:
Shift Towards Automation and AI
TCS has accelerated its transition towards AI-driven delivery models, particularly in software testing, data analysis, and customer support. These changes have reduced dependency on human intervention, making many roles redundant.
Global Economic Uncertainty
Although India’s economy is relatively stable, global headwinds — particularly in the US and European markets — have led to budget cuts by clients, impacting TCS’s revenue from major sectors like banking and retail.
Operational Cost Optimization
To stay competitive and improve profitability, TCS is focused on lean operations. Downsizing is being framed as part of a long-term strategy to keep the company financially resilient amid declining margins.
Project Pipeline Shifts
Several key international projects have either been delayed or canceled due to the volatile geopolitical climate, especially in the Middle East and Eastern Europe. This has led to an overstaffed bench, prompting resource reallocation or release.
Which Departments Are Most Affected?
Though TCS has not issued an official department-wise breakdown, sources from internal HR channels reveal the following teams are facing the brunt:
- Legacy Application Support Teams
- Testing Services (manual testing in particular)
- Onsite Coordination Roles
- Mid-level Management
- HR and Admin roles in non-strategic locations
Interestingly, departments involved in Generative AI, Data Science, Cybersecurity, and Cloud Services are seeing increased hiring, signaling a shift in the company’s focus areas.
Employee Reaction and Morale
For a company that has long prided itself on employee stability, this announcement has come as a major shock. Several employees took to LinkedIn and X (formerly Twitter) to express their disappointment.
“After 11 years at TCS, I received a two-month severance notice without much explanation. It's heartbreaking.” — Bengaluru-based software engineer
Internal surveys leaked online show a 28% drop in employee morale over the past quarter, with many fearing future rounds of layoffs.
What TCS Has Promised
TCS has stated it will provide support to affected employees through the following measures:
- Fair severance packages
- Job placement assistance
- Access to upskilling programs on internal platforms
- Extended health benefits for 6 months
While these measures are commendable, many argue that the timing — right after appraisals — and the lack of early warning has bruised trust among employees.
How Does This Compare to Other IT Firms in 2025?
TCS isn't alone. In 2025, major players like Infosys, Wipro, and HCLTech have also implemented smaller-scale layoffs, citing similar restructuring goals. However, TCS’s numbers are significantly higher, making this event particularly noteworthy.
The Bigger Picture: IT Sector in Transition
The Indian IT sector is undergoing a massive evolution with the rapid adoption of technologies like:
- Generative AI
- Cloud-Native Infrastructure
- Hyperautomation
The traditional IT services model — which relied on large teams for coding, maintenance, and manual QA — is becoming obsolete. TCS is trying to lead the change, but transformation always comes with pain.
FAQs About TCS Layoffs 2025
1. Why did TCS lay off 12,000 employees in 2025?
TCS is restructuring to align with AI, automation, and shifting client demands. Redundant roles were eliminated to optimize operations.
2. Which job roles are most affected?
Mainly mid-level managers, manual testers, and legacy tech workers. Non-billable roles also took a hit.
3. Are freshers safe from these layoffs?
For now, yes. TCS continues to hire freshers for new-gen tech roles through its NQT program.
4. Will there be more layoffs in the future?
While TCS hasn't confirmed, analysts predict further reductions in low-demand roles as AI adoption grows.
5. Are these layoffs only in India?
No, the layoffs affect global delivery centers, including North America and parts of Europe.
6. Is TCS offering any severance package?
Yes, affected employees will receive notice period pay, job placement help, and upskilling access.
7. What sectors in TCS are hiring?
AI, cybersecurity, cloud solutions, and data analytics are currently in high demand.
8. Is this the first time TCS has done mass layoffs?
No, but this is one of the largest layoffs in TCS’s history.
9. How will this affect the Indian job market?
It may temporarily strain the mid-level tech job pool, but upskilled professionals remain in demand.
10. What should current employees do?
Upskilling, staying adaptable, and preparing for cross-domain roles is strongly advised.
Conclusion: A Necessary Evil or Avoidable Crisis?
The TCS Layoffs of 2025 mark a significant turning point for the company and the broader Indian IT ecosystem. While restructuring in response to changing market demands is understandable, transparency, timing, and empathy play key roles in how such moves are received. For now, TCS is placing its bets on future-ready technologies, but its legacy as an employee-first company might take time to rebuild.
As the dust settles, one thing is clear: the IT industry is transforming fast, and those who adapt — employees and employers alike — will be the ones to thrive.
Report by Toofan Express