Government keeps close watch on TCS job cuts amid tech shift

The IT Ministry is monitoring TCS’ decision to lay off over 12,000 employees, mostly at mid- and senior levels. The government is focusing on job creation and reskilling as India’s largest IT firm realigns for AI-driven growth and global expansion

New Delhi: The IT Ministry is keeping a close watch on the developments after Tata Consultancy Services’ (TCS) decision to lay off over 12,000 employees, according to sources.

Employment growth remains a key priority, with sharp focus on how initiatives like Employment Linked Incentive can help boost job creation, they asserted. At the same time, the emphasis is on skilling and reskilling, they added.

---

The IT Ministry is keeping a close watch on the entire situation, and is in touch with the tech company, sources said. The ministry is concerned and will go into why it is happening to understand the underlying causes.

The stance assumes significance as India’s largest IT services firm, TCS, is set to lay off 12,261 employees or two per cent of its global workforce this year. The bulk of the impact will be felt on middle and senior grades.

TCS’s workforce stood at 6,13,069, as of June 30, 2025. It increased its workforce by 5,000 employees in the recently concluded April-June quarter. The move is part of the company’s broader strategy to become a “future-ready organisation”, focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement on Sunday.

“TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model.

“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” it said.

TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, the company added.