While FY25 attrition rates remained below pre-Covid levels, most companies experienced a 1 to 3 percentage point increase compared to FY24.
Industry sources said the lay-off may be part of the deal that Nokia has signed with TCS and HCL Technologies earlier this year.
As a part of cost cutting measures to tackle global economic downturn, IT major Tata Consultancy Services (TCS) on Thursday said job cuts are possible and ruled out salary hikes next year.
As Tata Consultancy Services (TCS), gets ready to lay off about 12,261 employees from its global workforce this year, here's what it means for your career.
Tata Consultancy Services (TCS) on Friday announced the launch of an Artificial Intelligence (AI) Experience Zone and Design Studio in London, and said its continued investments in the UK will create 5,000 new jobs across the country over the next three years. Currently, TCS supports over 42,000 direct and indirect jobs across the United Kingdom. In FY2024, TCS contributed 3.3 billion pounds to the UK economy, according to a regulatory filing by the company.
Tata Consultancy Services (TCS) employee headcount fell by a massive nearly 20,000 in a single quarter, as India's largest IT services company continues to restructure workforce to align with changed business dynamics. According to Q2 FY26 data on its website, the company's headcount has dropped to 5,93,314 in September quarter as compared to 6,13,069 in June quarter, even as IT workers' union NITES accused TCS of downplaying large scale layoffs through under-reporting.
Benchmark BSE Sensex fell 558 points on Thursday amid heavy selling in IT shares, as concerns over AI-led disruptions and waning hopes of a Fed rate cut after firm US economic data weighed on investor sentiment.
The Nifty IT index hit a more than nine-month low, trading at its weakest level since April 17, 2025.
While TCS cited evolving business needs and future readiness as reasons, industry experts say the action is a cost-cutting measure aimed at improving operating margins that have remained below the firm's aspirational range despite multiple efforts.
Infosys commits to hiring 20,000 graduates amid industry-wide layoffs and uncertainty.
Budget 2026 sticks to fiscal discipline, shuns populist measures despite five key state elections coming up, but ends up rattling stock markets with a higher transaction tax on derivatives trading.
Don't let a pink slip derail you. Anu Krishna, mind coach and co-founder of Unfear Changemakers, tells you how to prioritise your finances, upskill yourself and prepare for your next job.
This Budget positions India's taxation ideology as not merely a revenue source but as a strategic catalyst for growth, inclusion and long-term confidence.
'If the business doesn't recover in next 6-10 months, there might be situation where there would be some lay-offs...That may be required for survival and to ensure livelihood to millions of people.'
India's $280-billion IT industry heads into 2026, balancing visa-related headwinds and global trade uncertainty against its biggest-ever push into artificial intelligence and the rapid expansion of global capability centres (GCCs). Heightened scrutiny of the US H-1B visa programme - including a proposed $100,000 fee for new visas and concerns over a potential 25 per cent outsourcing tax - has complicated cross-border delivery for Indian firms, even as companies accelerate efforts to reduce reliance on onsite staffing.
Among Sensex firms, Tata Motors rose the most by 3.97 per cent. Mahindra & Mahindra jumped by 3.96 per cent. Maruti, Adani Ports, Bajaj Finance and UltraTech Cement were also among the gainers. However, Trent declined 3.81 per cent. Asian Paints, HCL Tech, Tech Mahindra, L&T, TCS, Power Grid and Sun Pharma were also among the laggards.
'Government officials use Gmail and ordinary phones without basic security consciousness.' 'Interoperability, especially in joint exercises with countries like the US, worries me.' 'It often means we open our systems to them, but they don't reciprocate.' 'They could have kill switches in their systems and might even be able to affect ours.'
The figure constitutes less than one per cent of the company's 1,30,000-workforce. According to the report, a TCS spokesperson reasoned that these employees had failed to meet performance standards.
The Trump administration has announced a massive increase in H-1B visa fees, imposing a $100,000 annual charge that will fundamentally alter how American companies hire skilled foreign workers, particularly impacting Indian IT professionals who comprise the largest group of beneficiaries.
Tata Consultancy Services (TCS) on Tuesday ruled out cutting down on hiring, saying it has no plans of doing so but it may have to pace hiring according to the evolving demand scenario. TCS is the largest Indian software exporter in terms of headcount, revenue and profit. The statement comes amidst a report that the software industry is going soft on hiring as demand falters from their key markets and some of them are even going back on their campus offers.
You can't be the second-most expensive market in the world and deliver just 10 per cent EPS growth, points out Akash Prakash.
It had announced slashing of up to 10,000 jobs globally by the end of 2013.
Export-led Indian IT sector is not directly hit by Trump's tariff order on goods, but there could be worrisome indirect bearings on it arising out of possible slowdown in decision-making and GDP growth in America over higher tariffs, which may then cloud demand from specific verticals, according to some analysts.
IT attrition rate is expected to be around 12% to 13% this year.
Finance Minister Nirmala Sitharaman on Tuesday announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and a spending splurge for states run by her party's new coalition partners as she unveiled the Modi 3.0 government's first budget after the general elections.
New Delhi, Jun 4 (PTI) Tata Consultancy Services, the country's largest software company, may sack as many as 290 employees at its Finland office, a move that the workers say is an attempt to shift jobs to India. TCS, which has a registered office in Helsinki and has an employee strength of about 80 ...
Out of 24,230 IIT and NIT grads, about 8,000 students didn't find any takers during campus placement drives this year.
'It is not that employee work is not happening if you don't see it.'
TCS is setting up a large BPO operation in Varanasi next year, some staff could be absorbed there
As the job markets open up, top IT services firms may look at a tiered strategy in which they hire entry-level talents at higher salaries, amid a major technological shift, say HR analysts.
After announcing a cut in the employees' salaries, IT major TCS has asked 500 employees to quit their jobs after a performance appraisal.
To me he always symbolised the sincere, confident, face of a Bharat whose rise is unstoppable. Ratan Tata was a Rishi who was unquestioningly trusted by people who never saw him and never met him, asserts Tarun Vijay, the former BJP MP.
Sector experts say rising pressure on margins owing to price discounts on the core business, increased hiring in the US and emergence of new technology areas are key reasons for such cost cutting.
The company hires postgraduate and PhD students from A+ grade institutes to be part of its research team.
Says more than 120 who lost jobs have approached it; TCS says workforce optimisation leads to some involuntary attrition, nothing out of ordinary
Employees with experience of two years and above across the company who were unable to meet the performance requirements of our company are asked to look for other jobs commensurate with their abilities, a TCS spokesperson said.
In July-Sept 2016-2017, TCS had missed street expectations with 7.8% growth in revenue.
While Indian IT has known what is coming and has a strategy ready to combat it, the same can't be said about the country and the government.
The Madras High Court has restrained software major TCS from retrenching its analyst who has been issued termination order by the company.
At Infosys and Wipro, 8,200 roles have been impacted in six months.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances