Tata Consultancy Services (TCS) employee headcount fell by a massive nearly 20,000 in a single quarter, as India’s largest IT services company continues to restructure workforce to align with changed business dynamics.
According to Q2 FY26 data on its website, the company’s headcount has dropped to 5,93,314 in September quarter as compared to 6,13,069 in the June quarter, even as IT workers’ union NITES accused TCS of downplaying large-scale layoffs through under-reporting.
TCS’s Chief Human Resources Officer, Sudeep Kunnumal, stated that about 6,000 employees were involuntarily exited (“released”) as part of restructuring. The rest of the reduction is attributed to a mix of voluntary attrition and internal realignments. He also emphasized that the company is not targeting a fixed headcount. Rather, exits are being carefully managed to align skill sets with future technology priorities.
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Despite Layoffs, the quarter saw 18,500 new hires, largely to support AI and emerging-technology initiatives.
The Nascent Information Technology Employees Senate (NITES) accused TCS of underreporting the scale of layoffs, claiming an additional 8,000 employees may have been removed beyond what was disclosed. NITES said that the decline in voluntary attrition (from 13.8% in Q1 to 13.3% in Q2) suggests that many exits were forced or managed, not genuinely voluntary. The union also raised concerns over transparency, regulatory compliance, and the human cost of such large-scale exits. ET
In July 2025, TCS had publicly announced a plan to reduce its workforce by 2% (≈ 12,000 jobs) over the fiscal year, focusing primarily on middle and senior management levels. The steeper-than-expected reduction in Q2 suggests that restructuring efforts are being accelerated to keep pace with evolving client demands, competition, and the shift toward AI-based services. The layoffs are seen by many analysts as part of a broader AI-driven transformation in the Indian IT sector, where automation and efficiency pressures are forcing companies to streamline human capital.
TCS has committed to supporting affected employees through severance packages, counselling, and outplacement assistance. The company insists it will continue hiring based on demand and skill alignment, rather than chasing arbitrary headcount targets.
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