TCS Cuts Nearly 20,000 Jobs Amid AI Shift and US Policy Changes
Tata Consultancy Services (TCS) eliminated approximately 19,755 positions by September 30, 2025, according to an India Today report. This represents one of the steepest workforce reductions in the company’s history, bringing total employee count below 600,000 for the first time since 2022.
Key Takeaways
- TCS reduced workforce by 19,755 employees by September 30, 2025
- Headcount dropped below 600,000 for first time in two years
- Company allocated $11.35 billion for severance costs
- Layoffs attributed to AI adoption and US immigration policy changes
Report Details Significant Workforce Reduction
The India Today report revealed that TCS’s workforce declined by 3.2% compared to the previous quarter. The job cuts included both voluntary separations and exit layoffs, marking the company’s most significant workforce reduction to date.
TCS set aside $11.35 billion to cover severance-related expenses, reflecting the substantial scale of the restructuring.
AI Adoption and US Policy Impact
The layoffs occurred as TCS faces dual pressures from artificial intelligence adoption and changing US immigration policies. The report indicated these factors contributed to the “steepest-ever” job cuts at India’s largest IT exporter.
Recent US policy changes have significantly impacted Indian IT companies. The US administration increased H-1B visa fees to $100,000 (approximately ₹88 lakh) and imposed higher tariffs on Indian exports.
In response, TCS has been localizing its US workforce to reduce dependence on the H-1B visa program. The company is adapting to immigration changes while maintaining hiring plans for AI, machine learning, and data analytics roles.
Broader Industry Implications
The TCS layoffs may signal a broader transformation within India’s IT sector. The industry appears to be shifting from mass manpower models toward more specialized, high-tech focused workforce strategies.
TCS missed its quarterly profit expectations, partly due to costs associated with the workforce reduction amid the evolving digital economy.
