Krithivasan emphasized that while the company is undergoing changes in its workforce structure, it remains focused on hiring professionals with high-level capabilities, particularly those whose expertise aligns with TCS’s long-term vision of technology-driven growth and expansion. As of June 2025, TCS boasted a worldwide workforce of 613,069 employees. The job reductions will be executed in stages throughout the year, with a significant focus on mid-level and senior staff. The company has assured that this restructuring process will be carried out with sensitivity and responsibility. All employees affected by the decision will receive their full notice-period pay along with severance packages. Furthermore, TCS is offering additional support such as extended health insurance, professional counselling services, and outplacement assistance to help these employees transition to alternative employment opportunities with greater ease.
TCS has firmly stated that this move will not disrupt its ability to deliver services to clients. The company expressed gratitude to the employees who may be affected, acknowledging their contributions and promising a thoughtful and compassionate approach to the process. The announcement came shortly after TCS made significant updates to its internal HR guidelines. According to these new rules, employees are now required to maintain a minimum of 225 billable days annually, and their “bench time”—the period during which an employee is not assigned to any active project—has been limited to 35 days. These new policies have caused concern among workers, with some reportedly seeking help from labour authorities in various states, fearing the loss of job security.
In its official communication, TCS explained that it is actively transforming itself into a future-ready enterprise. This transformation includes a wide array of strategic actions, such as deep investments in next-generation technology, expansion into new geographic and industrial markets, the widespread implementation of AI tools across projects and internal operations, forging stronger partnerships, building new infrastructure systems, and reassessing the existing workforce model. The company noted that in parallel with these transformations, it has also been executing reskilling programs and attempting to redeploy existing employees to suitable roles. However, in certain cases, if the redeployment of an individual is deemed impractical, the company has made the decision to release those employees from their roles.
Krithivasan reassured that this layoff initiative is not being rushed. Instead, it will unfold methodically over time. TCS will first engage in discussions with those who might be affected, attempt to find new roles for them within the company, and only proceed with layoffs when all other options have been exhausted. The CEO emphasized that the entire process would be conducted with a high degree of empathy and fairness. The company’s human resources department has already developed a framework to ensure transparency and compassion throughout the process. This includes extending insurance benefits wherever feasible, enlisting external agencies to assist with outplacement, and offering emotional and career counselling support.
Following the news, TCS shares experienced a nearly 2% decline, dropping to an intraday low of ₹3,081.6 on the Bombay Stock Exchange on Monday. Despite the market’s reaction, the company remains firm in its belief that these measures are part of a broader, necessary evolution to maintain its competitive edge in a rapidly shifting technological landscape.
