TCS to Cut 2% of Workforce, Affecting 12,000 Employees | TCS will hire 12,000 employees in 2026: CEO said- Difficult decisions have to be taken to make strong TCS; Right now 6.13 lakh employees in the company

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The total number of TCS employees in the April-June 2025 quarter was 6,13,069. 6,071 new employees are connected to the company in this quarter. - Dainik Bhaskar

The total number of TCS employees in the April-June 2025 quarter was 6,13,069. 6,071 new employees are connected to the company in this quarter.

Tata Group company Tata Consultancy Services (TCS) is planning to trim. The company will expel 2% of its total workforce ie more than 12,000 employees next year.

This move of the company will affect all countries and domain employees, where TCS is operational. The trimming will be between FY 2026 i.e. April 2025 to March 2026.

TCS total more than 6.13 lakh employees

According to TCS, the total number of employees of the company was 6,13,069 in the April-June 2025 quarter. 6,071 new employees are connected to the company in this quarter.

This is one of the most difficult decisions ever: CEO

In an interview given to Moneycontrol, Kritivasan of CEO of TCS said, ‘We are emphasizing new technology, especially AI and changes in operating models. Working methods are changing. We need to be ready for the future. We are using AI on a large scale and valuation of skills required for the future.

We have invested a lot in associates, so that they can be given opportunities for career growth and deployment. Nevertheless, there are some roles where the re-deployment has not been effective. Sorting will affect about 2% of our global workforce. This was not an easy decision and for me as a CEO it is one of the most difficult decisions ever. ‘

Kritivasan of CEO of Tata Consultancy Services (TCS). (File photo)

Kritivasan of CEO of Tata Consultancy Services (TCS). (File photo)

Sorting is not due to AI, not for skill development

Kritivasan said that to create a strong TCS, we have to take a difficult decision. In addition to the notice period-pay and aided serence package, the company will also consider increasing insurance benefits and providing outplaces opportunities for the affected employees.

CEO further said that this retrenchment is not due to AI, but to develop skill for the future. This is about the practice of deployment, not because we need fewer people.

TCS implemented a new bench policy from 12 June

Earlier, it was reported that thousands of employees can go due to the new bench policy of TCS. This policy came into force on 12 June 2025. The bench size/bench employee in the IT industry means parole employees which are not on any active project.

They live in the form of backup and are used in the event of sudden demand from the client. However, they get salary even while not working on any project. Under the new policy, employees will have to maintain at least 225 billable days in a year.

This means that they will have to stay on at least 225 business days such a project, which will give the company revenue. Also, the time limit to stay on the bench will now be limited to 35 days. The distance time from the project is called bench holding time.

Company’s profit up by 6% in the first quarter

TCS has made a profit of Rs 12,760 crore in the first quarter of FY 2025-26. It has increased by about 6% on an annual basis. The company had a profit of Rs 12,040 crore in the same quarter of the last financial year.

In the April-June quarter, the company generated a revenue of Rs 63,437 crore from operations. It is 1.31% less on an annual basis. In April-June 2024, the company generated a revenue of 62,613 crore. The company released the results of the April-June quarter on 10 June.

TCS was established in 1968

Tata Consultancy Services (TCS) is India’s Multinational Information Technology (IT) company. It is a subsidiary of Tata Group. TCS was established in 1968 as ‘Tata Computer Systems’. TCS became a public listed company on 25 August 2004.

It became India’s first company to go to the Informatics Market in 2005. In April 2018, the country’s first IT company with a market capitalization became the first IT company. The company’s current market cap is Rs 11.34 lakh crore. It works at 149 locations in 46 countries.

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