TCS Layoff 2025: Over 12,000 Jobs to Be Cut Due to AI Shift

July 27, 2025 / TCS Layoff

Introduction
Tata consultancy services [TCS] is an Indian based technology company with the greatest amount of IT services and has revealed that it will decrease its employment base by 2 percent in the current 2026 financial year. This ruling represents about 12,200 working positions destroyed mainly among the middle and upper managements.

Reasons Behind the TCS Layoffs

The main considerations that have contributed to this decision are:

Artificial Intelligence (AI) adoption: TCS is also implementing Artificial Intelligence (AI) to promote efficiency and user services.
Market Expansion: The business is expanding to new markets, and this requires reorganization of people in the workforce.
Economic Uncertainties: Postponements in making client decisions and project start-ups are some of the factors that have slowed down the pace of business.

It is stated by CEO K. Krithivasan that the reason behind the layoffs is not only AI but it is something larger than that to make sure that the company will be able to continue moving forward and will perform it in an agile and future-ready manner.

Tata Consultancy Services (TCS) office captured during the 2025 layoff wave, where over 12,000 employees lost their jobs due to the shift toward AI automation.

TCS Layoffs : Impact on Staffs

The first follow up will be the layoffs on the employees based on different parts of the world at middle and senior levels of the management. TCS ensures that the firm will handle the change process very well to ensure that besides the minimal effects on delivery of the services to the clients. Compensation will be given to the affected employees in terms of severance packages, out placement services, and prolonged benefits.Read more recent articles like this at News.highzones.com

Table: Major IT Company Layoffs in 2025

Company	Number of Employees Laid Off	Affected Divisions/Regions	Key Reasons for Layoffs
Microsoft	~15,000	Global (including Redmond HQ, Xbox, Gaming)	AI integration, restructuring, cost-cutting, and “Great Flattening” of management layers.
Google	~18,000	Global (multiple divisions)	Ongoing restructuring and realignment efforts.
Tech Mahindra	~2,000	India and global operations	Restructuring and cost optimization measures.
Infosys	~800 (trainees)	India (trainee level)	Performance-based exits and internal assessments.
IBM	~8,000	Global (primarily HR department)	AI-driven automation and restructuring.

TCS Layoff : Industry Implications

This is a part of the general shift in the Indian IT industry because firms are responding to innovation and market shifts. With the involvement of AI and automation, the traditional business models are being restructured causing rearrangement of the workforce.

IMPORTANT:

Microsoft: In July 2025, Microsoft reported that it would lay off around 9,000 workers, the company had already laid off a considerable number of employees in May, and June. The retrenchment included all the different divisions of the company, such as the Xbox and Gaming in accordance with the strategic change of the company to employ AI and promote efficiency of operations.

Google: In 2025, Google strategically laid off hundreds of workers following various rounds of layoff that occurred within several divisions. The company has been silent on the number of workers to be dropped but has accepted restructuring activities.

Tech Mahindra: Reports indicate that Tech Mahindra reduced its workforce by about 1,757 employees in the fourth quarter of 2025, mainly due to organizational restructuring and cost-saving efforts.

Infosys: Infosys has terminated close to 800 trainees in 2025, with the company justifying the layoff by pointing out at performance-based termination and internal evaluation as benchmarking the finish.

IBM: The IBM firm reported that it was laying off about 8000 employees with a major part of them in the Human Resources department of the firm. This inward shift focuses on automation, with AI now handling most of the tasks that humans once performed.

Conclusion of TCS Layoff

The actions taken by TCS to have to lay off more than 12,000 workers highlight the changing nature of IT sector. Whether it is advent of technology or the riskiness of the economy, workforce realignment is a scientific requirement as companies like TCS strive to adjust to the changing environment. The ability of the company to take care of its affected employees during this shift is an indication of its concern to its employees. Read more recent articles like this at News.highzones.com.

Disclaimer:
This article only have the intention of providing information. Any facts, quotations, and events are according to publicly accessible information at the time of writing. I have tried to be objective in the reporting of facts and to be fair, but the analyses and interpretations are my own and are not official opinion of any organization or individuals referred. It is kind advice to all the readers to do additional research and confirm the claims using reliable sources.