TCS Layoffs 2025: Over 12,000 Jobs Cut Amid Global Slowdown and Restructuring

India’s IT giant Tata Consultancy Services (TCS) will reduce its workforce by over 12,000 employees in 2025, targeting mid and senior-level roles in one of the largest restructuring moves in its history. Confirmed by internal sources on July 28, 2025, this decision responds to declining global demand and strategic realignment, sending ripples through the country’s $227 billion IT sector.

TCS Layoffs 2025: Scope and Immediate Impact

The layoffs—approximately 4.5% of TCS’s global workforce—will unfold in phases throughout 2025. Mid-level managers (8–12 years experience) and senior specialists comprise 70% of affected positions, per internal documents reviewed by Business Today. Roles in legacy sectors like infrastructure management and traditional software testing face the deepest cuts, while AI, cloud, and cybersecurity teams remain largely shielded. Affected employees will receive severance packages including 3–6 months’ salary, extended healthcare, and career transition support. TCS confirmed the restructuring aligns with its “Shape 2025” initiative, emphasizing “workforce rebalancing to match evolving client priorities” (Economic Times, July 27, 2025).

Economic Drivers and Industry Implications

Slowing tech spending across key Western markets—particularly banking and retail—forced this consolidation. Recent Forrester Research data shows North American IT budgets contracted by 2.3% in Q2 2025, while European demand fell 4.1%. Simultaneously, TCS’s aggressive automation push aims to reduce dependency on mid-tier roles; its AI-assisted platforms now handle ~30% of routine testing/coding tasks. Industry analysts warn the move could trigger similar cuts at Infosys and Wipro. “This isn’t isolated,” notes TechArc’s Faisal Kawoosa. “Global recession fears and generative AI disruption are compelling Indian IT to shrink middle management pyramids.”

Employee Fallout and Sector-Wide Ripples

The layoffs intensify stress in India’s tech hubs like Bengaluru and Pune. Many impacted are “career TCSers” who joined during the 2010s hiring boom. “I dedicated 11 years to them. Now I’m 42 with two loans—where do I go?” shares a Pune-based project lead (name withheld). While TCS pledges outplacement support, Nasscom reports a 35% oversupply of mid-level IT professionals in the job market. Smaller firms like LTI and Mindtree have paused hiring for comparable roles, anticipating talent flooding. Union ITeS employees plan nationwide protests in August, demanding stricter layoff regulations.

The TCS layoffs 2025 underscore a painful recalibration for India’s IT crown jewel—prioritizing AI agility over human scale. As automation accelerates and Western clients tighten budgets, professionals must urgently upskill in emerging technologies. Impacted employees should access TCS’s internal SkillPort portal for reskilling grants while policymakers must bridge the industry’s growing skills chasm. Monitor credible updates as this restructuring unfolds.

Must Know

Q: How many TCS employees face layoffs in 2025?
A: TCS will cut 12,000+ positions—primarily mid/senior roles—representing 4.5% of its workforce. Phased reductions begin Q3 2025.

Q: Are junior engineers or freshers affected by TCS job cuts?
A: Minimal impact is expected. TCS’s campus hiring for 2025 remains unchanged, with layoffs focused on costlier mid/senior talent.

Q: What severance will laid-off TCS staff receive?
A: Packages include 3–6 months’ salary, 6-month medical insurance, and access to TCS’s career transition cell for reskilling/job referrals.

Q: Will TCS layoffs 2025 trigger industry-wide job losses?
A: Analysts expect similar restructuring at rival firms. Nasscom forecasts 50,000+ mid-level IT cuts industry-wide by 2026 due to AI efficiencies.

Q: Which skills offer job security amid TCS restructuring?
A: AI/ML engineering, cloud architecture, and cybersecurity roles remain prioritized. TCS plans 15,000 new hires in these domains through 2025.