Mumbai : Tata Consultancy Services (TCS) announced a major restructuring across the company. Reportedly forced by the growing use of AI, this restructuring led to job cuts within the company. Now, TCS has confirmed that job cuts linked to its ongoing restructuring plan are not over yet. TCS has said employee exits will continue into the next quarter, though it has no fixed target in mind.
The company maintains that every termination will be backed by a valid reason and handled through a defined internal process, even as its overall workforce continues to shrink. The statement comes at a time when many TCS employees could be anxious due to falling headcount numbers, tighter office attendance rules, and delays in appraisals. This indicates that the layoffs at TCS in the last three months could be a mix of the company consciously firing 1800 employees using due process, as well as natural attrition, where the employees left on their own.
TCS reduced its workforce by 11,151 employees. As a result, its total employee count dropped to 5,82,163 at the end of December, down from 5,93,314 in the previous quarter. This is the second straight quarter in which the company has reported a net fall in headcount, taking its workforce well below the six-lakh level. In total, in the last six months, the company has shed around 30,000 employees if you also take into account the 19,755 staff reduction in the September quarter.
While there has been a fair assumption that TCS, just like many other tech companies nowadays, is reducing headcount to meet challenges — and opportunities — brought about by AI tools like Claude and Cursor, there could also be another aspect to it. A recent report by Oxford Economics highlights that most of the job cuts seen in recent months are not really due to AI. Instead, they are an attempt by companies to weed out non-performers as well as optimise their workforce.
Like other tech companies, TCS is also changing workplace rules. Recently, the company tightened its work-from-office requirements. Reports suggest some employees have seen their final anniversary appraisals put on hold because they failed to meet the mandatory office attendance requirements. In certain cases, appraisals were completed at the team level but not cleared centrally.
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