TCS' layoffs jolt IT industry; wake up call for tech heads

IT companies want to become future-ready, focusing on investments in technology, AI deployment, market expansion, and workforce realignment

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The shocking 12,000 layoffs in TCS may not be the end of job cuts, as analysts fear Al and automation will lead to more downsizing in the industry in the times to come.

A look at the headcount dashboard of TCS ~ India’s largest IT services company ~ over the past years shows that the company's employee count peaked in FY23 at 6.14 lakh, and dropped in the next two fiscal years.

The employee tally grew from 4.48 lakh in FY20 to a record high of 6.14 lakh at the end of FY23, adding nearly 1.7 lakh employees in just three years. TCS experienced a notable decline of 13,249 in its workforce the following year, with the number falling to 6.01 lakh in FY24.

After FY24, the company saw a modest rebound - its employee numbers rising to 6.07 lakh in FY25 and reaching 6.13 lakh in the first quarter of FY26.

In fact, between April and June 2025, the company’s workforce increased by over 5,000 employees.