India’s largest IT services company, Tata Consultancy Services(TCS), confirmed on Thursday that it has released around 1% of its workforce, or approximately 6,000 employees, as part of an ongoing organizational restructuring.
Speaking to reporters, Chief Human Resources Officer (CHRO) Sudeep Kunnumal said the employees affected were primarily from the mid and senior management levels, noting that these individuals could not be redeployed in suitable roles.
“As we speak today, we are close to one per cent of people that we have released in mid and senior levels, whom we could not redeploy in the right role,” Kunnumal said, adding that the restructuring process is not driven by numerical targets.
He also dismissed media reports suggesting large-scale layoffs of 50,000 to 80,000 employees, calling them “extremely exaggerated and not factual.”
“A lot of these numbers are not factual. They are extremely exaggerated and should be disregarded,” the CHRO emphasized.
According to data shared with the Nascent Information Technology Employees Senate (NITES), TCS’s total headcount stood at 593,314 employees at the end of the second quarter of FY2025–26, compared with 613,069 employees in the previous quarter — a net reduction of 19,755 employees.
Despite this, Kunnumal stressed that TCS continues to honor all hiring commitments, revealing that the company onboarded 18,500 new employees in the July–September quarter.
“As an organization, we will continue to honor all offers,” he said.
When asked about the company’s hiring target of over 40,000 employees for FY2025–26, Kunnumal stated that hiring would be driven by business demand rather than fixed numbers.
“I don't want to give you a number. Based on business demand, we will support and bring in the best talent to shape our journey,” he said.
TCS also announced plans to pay higher quarterly bonuses and variable payouts, particularly for senior employees, citing improved business performance.
“At the junior level, we have been paying 100%, which will continue. For seniors, we will pay a higher amount based on individual and unit performance,” Kunnumal added.
Earlier reports suggested that TCS was planning to cut around 12,000 jobs globally, or roughly 2% of its workforce, as part of a restructuring effort to realign operations amid a growing push toward artificial intelligence (AI). Kunnumal, however, reiterated that the process has been conducted “with empathy and respect.”
“We created dedicated teams to have empathetic conversations and benchmarked severance packages to ensure fairness,” he said.
For the July–September 2025 quarter, TCS reported a 1.4% year-on-year rise in consolidated net profit to ₹12,075 crore, up from ₹11,909 crore in the same period last year, according to its BSE filing.