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'It's Not AI': TCS CEO Krithivasan Explains Real Reason Behind 12,000 Job Cuts

Tata Consultancy Services announced plans to lay off about 12,000 employees, roughly 2% of its workforce, in the financial year 2025-26.
The layoffs result from a strategic restructuring prompted by skill mismatches and difficulty redeploying some middle and senior employees amid a shift to agile methods.
TCS aims to handle the transition gradually with care to avoid disruption to services while providing severance, health benefits, counselling, and outplacement support.
CEO Krithivasan emphasized, “It is about us being future-ready” and denied AI productivity gains as the primary reason for the job cuts.
The layoffs mark one of TCS’s biggest reductions amid rising attrition, investor caution, and efforts to realign workforce for new technologies and market expansion.

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'It's not AI': TCS CEO Krithivasan explains real reason behind 12,000 job cuts

TCS is set to cut 12,000 jobs globally, around 2% of its staff, due to skill mismatches, not AI. The layoffs will occur gradually through FY26 and will focus on mid-to-senior levels, with support and severance for affected employees.

2 days ago·New Delhi, India

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