TCS denies 80,000 layoff rumours, confirms 2% workforce cut

Tata Consultancy Services (TCS) has firmly dismissed recent social media speculations suggesting the company laid off 80,000 employees. According to various news reports, a TCS spokesperson labelled the claims circulating online as “incorrect and misleading”. The official statement confirmed that the total workforce reduction would affect only 2% of its global staff, translating into approximately 12,000 employees.

The clarification came after a viral post on the social media platform X fuelled panic across the tech sector. The post alleged that 80,000 employees had been asked to resign, some with an 18-month severance package and others receiving no compensation. This misinformation spread quickly, causing significant anxiety among employees not just at TCS, but across the Indian IT industry.

The official number

TCS has reiterated that its actual workforce adjustment is limited to about 12,000 employees. The company framed this reduction as a necessary step in its strategic restructuring plan.

This realignment is focused on optimising roles and skills within the company, particularly concerning the increased adoption and integration of Artificial Intelligence (AI) and automation across client projects. The primary affected employees of this exercise are in the middle and senior management grades whose skillsets may not align with emerging technological priorities.

Industry precedent

TCS confirmed it offers due care and severance to affected employees. Reports suggest severance packages vary based on factors like tenure and role, with long-serving staff possibly receiving up to two years' salary. However, the viral posts exaggerated this variability, incorrectly suggesting that a large number of employees were terminated without any compensation.

The layoffs at TCS are not an isolated event. Competitors have also announced major workforce reductions as they pivot towards AI-driven solutions. Accenture, for example, cut over 11,000 jobs globally, focusing on employees unable to transition to reskilled AI roles. Similarly, Microsoft laid off thousands of employees this year as part of a restructuring while simultaneously investing heavily in AI initiatives.

For the ICT business world, the TCS situation highlights the critical need for transparent communication to manage employee morale and retain trust amid technological disruption.

Read More:

IT Union challenges TCS layoffs; calls for government intervention

TCS to lay off 12,000 employees; What does it means for Indian IT

TCS Q1 FY26: Profit jumps 6% to Rs 12,760 Cr, revenue rises by 1.3%