Daijiworld Media Network - Mumbai

Mumbai, Jul 27: In a major strategic realignment, Tata Consultancy Services (TCS) — India’s largest IT services firm — announced on Sunday that it will reduce its workforce by 2% in the financial year 2026. The cuts, which will impact around 12,200 employees, are expected to primarily affect middle and senior management levels.

The move comes as TCS adapts to an evolving tech landscape, driven by expansion into new markets, investment in emerging technologies, and a growing emphasis on artificial intelligence (AI). While the company is actively reskilling and redeploying many of its employees, it acknowledged that some roles will become redundant in the transition.

"This transformation is being carefully executed to ensure no disruption in service delivery for our global clients," the company said in an official statement.

The announcement reflects wider trends in India’s $283 billion IT sector, which is grappling with weak global demand, cost-conscious clients, and ongoing uncertainty in U.S. trade and tech investment.

TCS CEO K. Krithivasan recently highlighted that project delays and prolonged client decision cycles were weighing on growth. Despite these headwinds, TCS maintains that its strategic shift is essential for future competitiveness.

Industry analysts view the restructuring as part of a broader pivot by major IT firms toward leaner operations, AI integration, and digital-first service models, in response to a rapidly changing global business environment.