TCS to Lay Off 12,000 Mid, Senior-Level Employees in Major Restructuring Move

MUMBAI, India – Tata Consultancy Services (TCS), India's largest IT services company, is set to undertake a significant organizational restructuring that will impact approximately 12,000 employees in mid and senior-level positions, sources familiar with the matter confirmed late Sunday evening. This move, one of the largest workforce adjustments in the company's recent history, is sending shockwaves through India's technology sector.

The layoffs are reportedly part of a broader strategic pivot to focus on high-growth areas like Artificial Intelligence (AI), cloud infrastructure, and cybersecurity, while scaling back on roles tied to legacy systems and traditional project management.

In a statement, TCS did not use the term "layoffs" but referred to the move as a "workforce realignment to better align with our strategic priorities." The company emphasized its commitment to growth and stated it will continue to hire thousands in emerging technology domains.

"As we evolve to meet the changing needs of our clients, we are recalibrating our workforce to build deeper expertise in next-generation technologies," the statement read. "We are providing all necessary support, including severance packages and outplacement services, to the affected employees."

This decision comes amid a challenging global macroeconomic environment where clients have been cautious with tech spending. However, industry insiders suggest this is less about cost-cutting and more about a fundamental shift in the skills required for the future of IT services.

"The message is clear: the era of linear headcount growth is over," said an anonymous senior manager at the company. "The focus now is on non-linear growth driven by AI-powered platforms and specialized consulting. Roles that can be automated are being phased out."

This action by an industry bellwether like TCS is expected to have a ripple effect across the Indian IT landscape.

"This is a pivotal moment for the Indian IT industry," commented Kiran Desai, lead IT analyst at a Mumbai-based research firm. "For years, the model was based on labour arbitrage. Now, with generative AI automating many coding and maintenance tasks, the value is in strategic thinking, complex problem-solving, and deep domain expertise. TCS is making a painful but necessary transition to stay relevant for the next decade."

The company has assured that it remains one of the largest recruiters of fresh engineering talent in the country, but this move signals a significant and potentially difficult transformation for India's massive mid-level IT workforce.