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- Published on July 28, 2025
- In IT Services
TCS to ‘Layoff 2% Workforce’, Software Spend Down by $200 Mn Amidst AI Overhaul
The company stated that its employees have invested 15 million hours in developing expertise in emerging technologies to drive business transformation.
- By Mohit Pandey
The first quarter of FY26 was a challenging period for Indian IT giants, including TCS, Wipro, and HCLTech, with some reporting a drop in revenue and others recording single-digit growth. However, beyond the revenue figures, the focus on AI might be overshadowing the broader story of these firms.
According to a report by Moneycontrol, TCS plans to reduce its workforce by 2% by 2026. This would impact 12,000 jobs primarily at the middle and senior levels. “It has not been an easy decision and one of the toughest decisions I have had to take as CEO,” TCS CEO K Krithivasan said, while adding that AI is not the complete reason for the layoff.
The company also mentioned that it is undergoing a significant overhaul, which includes strategic initiatives in new markets and the deployment
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Mohit Pandey
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.
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