Overview

• TCS is reducing roughly 2% of its global workforce, affecting about 12,200 mid- and senior-level employees through fiscal 2026.
• Affected staff will receive severance packages that include notice-period pay, extended insurance and outplacement support.
• A revised bench policy requires employees to log at least 225 billable days annually and limits unallocated bench time to 35 days per year.
• The Union Ministry of Labour and Employment has summoned TCS for an August 1 meeting over delays in onboarding more than 600 lateral hires.
• Analysts say the layoffs signal further workforce trimming across the IT sector as AI reshapes service models and clients demand 20–30% price reductions.