Tata Consultancy Services (TCS) will reduce its workforce by approximately 2%, impacting over 12,000 employees globally. The company, which employs over 613,000 individuals, is making these cuts as part of a strategic realignment. This realignment includes adopting AI, expanding into new markets, and addressing shifts in technology and business operations. The layoffs will primarily affect middle and senior management roles.
TCS is providing affected employees with severance packages, outplacement services, and extended benefits. The company aims to ensure minimal disruption to client services during this transition. TCS is also focused on retraining and redeploying staff where feasible. This move is part of a broader effort to become more agile and future-ready amidst evolving technology and workplace models.
The IT sector faces challenges, including clients holding back on non-essential spending due to economic uncertainty. TCS is expanding into new markets like Korea and Southern Europe and exploring opportunities in verticals such as sports to offset these challenges. The company is also focusing on smaller, quicker-return projects and aiming for higher win rates in deals.
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