TCS Layoffs to Continue in 2026, 30,000 Jobs Cut in Six Months
Tata Consultancy Services (TCS) has confirmed that its ongoing job cuts are not over and will extend into 2026. The IT giant has already reduced its workforce by approximately 30,000 employees over the last two quarters, with more terminations expected.
Key Takeaways
- TCS will continue employee terminations into 2026 as part of its restructuring.
- The company’s total headcount has fallen by around 30,000 in the last six months.
- Management denies having a fixed layoff target, stating each exit follows a valid reason and due process.
- Stricter office attendance rules are delaying appraisals and adding to employee anxiety.
No Fixed Target for Layoffs, Says HR Head
After announcing its Q3 results, TCS stated that employee exits will continue into the next quarter. The company’s Chief Human Resources Officer, Sudeep Kunnumal, told analysts that around 1,800 employees were let go in the October-December quarter through a defined process.
He stressed the company is not chasing a specific number. “Exits happen only when there is a clear and genuine reason,” Kunnumal said, according to a MoneyControl report.
Steep Decline in Headcount
The official numbers reveal a sharper decline. TCS’s total headcount fell by 11,151 employees in the December quarter, dropping to 5,82,163. This marks the second consecutive quarter of net reduction.
Combined with the 19,755 staff reduction in the September quarter, the total employee loss in the last six months stands at nearly 30,000.
AI or Performance-Based Cuts?
While the restructuring is reportedly linked to the growing use of AI, a different perspective exists. A recent Oxford Economics report suggests many recent tech job cuts aim to weed out non-performers and optimise costs, with AI being used as a convenient public messaging tool.
However, there is no direct indication that TCS is following this specific pattern highlighted in the report.
Stricter Office Rules Compound Employee Concerns
Adding to workforce anxiety, TCS has tightened its work-from-office mandates. Reports indicate that some employees have had their final anniversary appraisals put on hold for failing to meet attendance requirements.
Internal communications warn that continued non-compliance could lead to employees being excluded from the 2026 performance rating cycle entirely.
