The Ministry of Electronics and Information Technology is keeping an overwatch on Tata Consultancy Services’ (TCS) decision to lay off more than 12,000 employees, reported the news agency PTI, citing people aware of the development on Monday, 28 July 2025.
The Ministry has its focus on the nation’s employment growth with initiatives like Employment Linked Incentive, which can boost the job creation in the Indian economy, while focusing on skilling and reskilling, according to the people cited in the news report.
The Ministry is reportedly concerned and will look into why the lay offs are happening to understand the underlying cause of concerns in the IT major.
TCS Layoffs
India’s largest IT company, TCS, on Sunday, 27 July 2025, announced its plans to reduce its workforce by 2% or roughly over 12,000 employees in its 2026 financial year, according to multiple media reports.
The layoffs will be focused on middle and senior management employees, as per the latest reports. The IT firm’s workforce was at 6,13,069 people as of the April-June quarter of the financial year 2025-26.
TCS said that the job cut move is a part of a broader strategy to become “future-ready” and focus on technological investments, AI developments, market expansion, etc., reported the news agency, citing the official statement.
The company is also retraining and redeploying staff to become more agile and future-ready amid rapid technological disruptions, particularly in Artificial Intelligence (AI).
“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,” the company said, as per the report.
The IT major also said that the company will provide appropriate benefits, outplacement, counselling, and support to the impacted employees due to the job cuts.
TCS employee attrition rate for the April-June quarter jumped 13.8% on a last twelve-month (LTM) basis, marking a marginal rise on a quarter-on-quarter (QoQ) basis, compared to its 13.3% levels in the January-March quarter of FY 2024-25, Mint reported earlier.