Archive · 29 Jul 2025
TCS Announces Layoffs, Faces Market Pressure and Share Decline
TCS, a big IT company, is letting go of about 12,000 workers, mostly in the middle and upper levels.
This is part of a plan to update the company's skills.
Even though they are cutting jobs, the company still made a good profit this past quarter and is paying out dividends.
However, the company's stock price has gone down a lot recently, and experts are concerned about the future.
Investors are worried because of the layoffs and broader economic conditions.
TCS announced layoffs of approximately 12,261 employees, about 2% of its global workforce.
The layoffs primarily affect mid- and senior-level roles as part of becoming a future-ready organization.
Despite layoffs, TCS reported a strong Q1 FY26 performance with a 6% rise in net profit.
TCS declared an interim dividend of Rs 11 per share, maintaining its pay-out discipline.
Shares of TCS have fallen significantly, with technical analysts noting oversold conditions.
- Who
- TCS, and primarily impacting mid- and senior-level employees.
- What
- TCS announced layoffs of approximately 12,261 employees.
- When
- The layoffs were announced on July 29, 2025.
- Where
- Globally, across TCS locations.
- Why
- As part of a move to become a future-ready organization.
TCS Management
Market Analysts & Employee Unions
Perspective on Job Cuts
TCS Management
Layoffs are based on skill mismatches in a transforming tech landscape, not AI-related redundancy.
Market Analysts & Employee Unions
Layoffs are a sign of weak demand and a need for cost optimization.
Employee Support and Compliance
TCS Management
Focus on reskilling and redeployment options for affected employees.
Market Analysts & Employee Unions
Layoffs raise concerns regarding labor norms and compliance.
- Company
- TCS
- Layoffs
- Approximately 12,261 employees
- Impacted Employees
- Mid and senior-level employees
- Q1 FY26 Net Profit
- Rs 12,760 crore (up 6% year-on-year)
- Interim Dividend
- Rs 11 per share
Sources
Letters to the Editor dated July 28, 2025
‘Economic earthquake’: Cong expresses concern over TCS layoffs announcement
Jairam Ramesh calls TCS layoffs an ‘economic earthquake’, hopes it’s a one-time tremor - Telegraph India
Inflection point for IT
Behind the layoffs at TCS that could affect 12,000 jobs
TCS layoff shocker has a lesson for all IT pros
MyVoice: Views of our readers 29th July 2025
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