TCS shares are trading down after its announcement to lay off 12,200 workers
After the software giant Tata Consultancy Services (TCS) announced that it would lay off over 12,200 workers in FY26, its shares were trading down on Monday.
On the BSE, the share fell 1.7% to an intraday low of Rs 3,081. India’s largest IT exporter on Sunday announced plans to lay off around 2 per cent of its global workforce.
With 6.13 lakh workers as of June 2025, the IT behemoth intends to undertake layoffs across a number of areas and regions. The business claimed in a statement that middle and senior grades will be the most affected by the layoffs.
The decision, which TCS CEO K Krithivasan called “one of the toughest” he had to make, is meant to make the organization “future-ready and agile” in the face of quickly changing workplace patterns and technological advancements.
According to the allegations, the corporation is providing notice period compensation, extended insurance, severance packages, and placement support in locating other employment possibilities.
According to TCS, the difficulties in redeploying employees whose existing positions no longer match the company’s changing skill requirements are what are driving the layoffs rather than cost-cutting or automation. Demand in the IT industry is changing as a result of the IT giant’s present focus on the widespread implementation of artificial intelligence (AI) and other new technologies.
“TCS — the creation of the great F.C. Kohli and the pride of India — has triggered an economic earthquake by its announcement of 2 percent layoff in upper management,” Congress lawmaker Jairam Ramesh said in a post on X.
“A skills mismatch has been cited as the cause. In any case, the news is worrying, and the country can only hope that the tremor is an isolated incident,” he continued.
According to analysts, some senior professionals are finding it difficult to adjust to the contemporary, tech-driven workplaces, and roles such as manual testing are becoming less common.
The IT behemoth just revealed a Q1 FY26 net profit of Rs 12,760 crore, up 6% year over year. During this quarter, operating revenue increased 1.3% to Rs 63,437 crore. The company has declared an interim dividend of Rs 11 per share.