Team siliconindia

• TCS reduces workforce focusing on middle and senior roles
• Job cuts driven by skill mismatches and AI industry shifts
• Company localizes US workforce to adapt to visa changes

Tata Consultancy Services (TCS), India’s largest private-sector employer, made its biggest-ever job cuts in the quarter ending September 30, reducing its workforce by 19,755 employees. This marks a 3.2% drop from the previous quarter and brings the headcount below 600,000 for the first time since March 2022. The cuts include both layoffs and voluntary exits.

TCS is targeting a 2% overall reduction in staff by March 2026. The focus is mainly on middle and senior-level employees, where the company sees a 'skill and capability mismatch', said Chief Human Resources Officer Sudeep Kunnumal. The IT sector is rapidly evolving with new technologies like generative AI, prompting companies to reshape their workforce.

The company set aside Rs 11.35 billion ($128 million) to cover severance costs. This one-time expense contributed to TCS missing profit expectations for the quarter. Analysts from Citi noted that these job cuts also signal a cautious business outlook amid global uncertainties.

Also Read: Loom Solar and GSV Join Hands to Train Clean Energy Talent

TCS is adjusting to challenges from the US, including tightened H-1B visa rules and tariffs on Indian IT services. To reduce dependency on visas, TCS has increased hiring of local talent in the US. “Our business model will quickly adapt to immigration policy changes”, Kunnumal said.

Despite the cuts, TCS remains focused on hiring professionals with skills relevant to the future, ensuring it stays competitive in a rapidly changing industry landscape.