Tata Consultancy Services (TCS), India's largest IT services company, is navigating a period of workforce restructuring amid evolving business needs and a strategic pivot towards artificial intelligence (AI). Recent reports have highlighted a reduction in the company's headcount, prompting concerns about large-scale layoffs. However, TCS's Chief Human Resources Officer (CHRO), Sudeep Kunnumal, has addressed these concerns, clarifying the company's approach and emphasizing that TCS is "not chasing a target" for job cuts.

Kunnumal stated that TCS has "released" approximately 1% of its workforce, which translates to about 6,000 employees, primarily at the mid and senior levels. These individuals were let go as part of a restructuring exercise, as they could not be redeployed into suitable roles within the organization. Kunnumal stressed that figures circulating in the media suggesting potential layoffs of 50,000 to 80,000 employees are "extremely exaggerated" and should be disregarded.

While TCS has acknowledged a decrease in its overall headcount, the company maintains that this reduction is not solely due to involuntary attrition. According to a statement by the IT workers' union Nascent Information Technology Employees Senate (NITES), TCS's employee count fell by 19,755 in the second quarter of FY26, from 613,069 to 593,314. Kunnumal explained that this figure includes both voluntary departures and involuntary attrition.

TCS has allocated ₹11.35 billion to cover severance-related costs, indicating a commitment to supporting employees affected by the restructuring. Kunnumal emphasized that the company is approaching this exercise with "empathy and care," offering severance packages that are higher than industry standards. The severance packages are tailored to various employee categories, considering factors such as length of service and skill obsolescence.

The company's restructuring efforts are aligned with its strategic focus on becoming an AI-led technology services provider. TCS is investing heavily in AI and related technologies, including plans for a nearly $7 billion investment in AI data centers globally. This shift requires a workforce with new skill sets, leading to the realignment of talent and the release of employees whose skills no longer match the company's needs.

TCS is also adapting to changes in the global business environment, including evolving immigration policies in the United States. CEO K Krithivasan has announced that TCS will reduce its reliance on H-1B visas and prioritize hiring local talent in the US. The company has already significantly localized its US workforce, with only approximately 500 associates on new H-1B visas issued in the past year. Krithivasan stated that TCS's business model can adapt quickly to any changes in immigration policy.

Despite the workforce adjustments, TCS remains committed to hiring fresh talent and honoring all job offers. The company onboarded 18,500 individuals in the July-September quarter of 2025 and is on track to meet its campus hiring targets. TCS also plans to increase its hiring of fresh engineering graduates in the upcoming fiscal year (FY26).

Furthermore, TCS is investing in reskilling and upskilling its existing workforce to prepare them for the demands of the AI-driven economy. The company is creating personalized learning pathways using AI and collaborating with academic institutions to introduce skills required for next-generation technology and human-AI collaboration.

In addition to its efforts in India and the US, TCS is also expanding its presence in other global markets. The company recently announced plans to create 5,000 new jobs in the United Kingdom over the next three years and launched a new Artificial Intelligence Experience Zone and Design Studio in London.

Overall, TCS's workforce restructuring is a multifaceted strategy driven by the company's commitment to innovation, adaptation to changing market dynamics, and investment in future-ready talent. While the company is making difficult decisions regarding workforce realignment, it is also focused on providing support to affected employees and creating new opportunities for growth and development for its existing and future workforce.