Tata Consultancy Services (TCS), India’s largest IT services company, is in the midst of one of its biggest workforce reshuffles in years. In the last six months alone, the company has seen its workforce decline by nearly 30,000 amid a major restructuring drive. The increasing use of AI in the tech sector has reportedly accelerated changes in the workforce.

While TCS says the departure of most employees is part of a structured, process-driven approach, the scale and timing of the layoffs highlights that AI is not only reshaping Silicon Valley in the US, but India’s tech landscape is also feeling its impact, forcing companies to rethink how they organize themselves for the future.

Let’s take a look at what’s happening at TCS in five key points.

Point 1: TCS announces major layoffs in 2025

The story begins in mid-2025, when TCS begins a massive restructuring exercise across teams. At the time, the company acknowledged that changing business needs, automation and the increasing use of AI tools were reshaping the way work was done. But this restructuring soon turned into job cuts, with many roles either merged, redefined or phased out. Although TCS did not call it mass layoffs, as the year progressed, employees across various departments saw a steady increase in employee attrition.

Point 2: Layoffs spread over months

The reduction in the number of TCS employees has been gradual. In the July-September quarter of 2025, the company reported a net reduction of about 19,755 employees. This followed another massive fall of 11,151 employees in the October-December quarter, which was announced just a few days earlier. Overall, there were about 30,000 exits in just six months in these two quarters, bringing TCS’ total workforce down to about 5.82 lakh, much lower than the six lakh figure it has maintained over the years.

Although the company’s HR leadership later clarified that about 1,800 of these exits in the December quarter were outright terminations, the rest came from natural attrition and possibly the company’s decision not to refill vacant positions.

Point 3: Why are layoffs happening?

Publicly, TCS has linked the changes to restructuring and efficiency drives rather than any single trigger like AI replacing jobs. However, reports suggest that the reasons are layered. A recent Oxford Economics report suggests that many tech layoffs globally are driven less by AI and more by cost optimization. They are also an attempt to eliminate potentially underperforming roles. While there are no direct reports that TCS is following this exact playbook, analysts believe that performance filtering, tighter budgets and increased customer demands are playing a role in the current cuts.

Point 4: There may still be more layoffs

Employee concerns at TCS and the broader Indian IT industry have grown, with the company acknowledging that the restructuring process is far from over. After announcing its third quarter results, TCS said that employee attrition is likely to continue in the next quarter and possibly beyond that, if needed. Chief Human Resources Officer Sudeep Kunnumal told analysts the company did not have any numbers for job cuts, but said layoffs would happen whenever there is a “clear and genuine reason.” In other words, there is no official end date for the restructuring, and further job cuts in 2026 remain a real possibility

Point 5: Organizational changes and strict rules for working from office

Along with the layoffs, TCS has also tightened its workplace policies, especially regarding office attendance. The company has strengthened its order to work from office and asked employees to be physically present more often. Reports suggest that some employees have also had their annual appraisal delayed due to non-compliance with attendance rules. Meanwhile, internal communications reviewed by media outlets warn that employees who are not meeting these requirements could have their performance ratings affected in the 2026 cycle, adding further pressure to those who are already uncertain about their job security.