India’s largest IT services firm, Tata Consultancy Services (TCS), is going through a major restructuring phase. Over the past six months, the company has shown the door to more than 30,000 employees—a number so large that it exceeds the entire workforce of several companies listed on the Nifty 50.

This massive reduction has sparked concern across the IT sector and among working professionals. The scale of the layoffs highlights the depth of the challenges currently facing India’s tech industry.

Why did TCS take this step?

The decision was not abrupt. TCS has been grappling with falling profits, rising operational costs, and a slowdown in global IT demand. At the same time, rapid adoption of artificial intelligence and automation has reduced the need for many traditional roles.

Back in July 2025, the company had already signalled a possible workforce reduction of around 2%, and the latest layoffs appear to be part of that long-term strategy.

Who was most affected?

The biggest impact has been felt at the middle and senior management levels. In the most recent quarter alone, over 11,000 employees were laid off. As a result, TCS’s total headcount has fallen to around 5.8 lakh. The company had reportedly identified more than 12,000 roles that it considers irrelevant for its future roadmap.

What about profits?

TCS’s net profit has dropped by nearly 14%, a decline that has added pressure on management to cut costs and improve efficiency. Despite the workforce reduction, the company has said that customer delivery and service quality will not be affected.

The growing role of AI and what lies ahead

Like the rest of the IT industry, TCS is moving rapidly into the AI-driven era. While some roles are being eliminated, the company is also investing in reskilling and upskilling employees for new technologies. In the coming years, job profiles and work culture within IT firms are expected to change dramatically.