Tata Consultancy Services (TCS) is set to continue job cuts into 2026 as part of a major restructuring exercise that began in 2025.
India’s largest IT services company has confirmed that further layoffs are planned, with the overall target being a 2 percent reduction in headcount.
During a review of the company’s Q3 earnings, senior executives said that only about half of the restructuring plan has been completed so far.
According to reports, Sudeep Kunnumal, Vice President and Chief Human Resources Officer at TCS, told analysts that the company has implemented roughly 1 percent of the planned job cuts, with the remaining reductions expected over the next few months.
TCS has maintained that layoffs are being carried out through a structured internal process and only after exploring redeployment options.
However, the announcement has added to anxiety among employees, many of whom are already concerned about job security, tighter performance rules and delays in appraisals.
“We estimate the total reduction to be around 2 percent. We are currently at about 1 percent. We will continue to evaluate employees for redeployment, and those we are unable to redeploy will be released,” Kunnumal said.
He added that the company is closely reviewing its workforce, particularly at the mid and senior levels, and will let go of employees who do not meet expectations under the new operating model.
According to a Moneycontrol report, TCS laid off around 1,800 employees in the last quarter alone, as stated by the HR chief during analyst interactions.
However, the company’s own factsheet suggests that the number could be higher. It indicates that more than 11,000 employees were let go by the end of the second quarter.
In the third quarter, TCS reported a net decline of nearly 20,000 employees, which amounts to roughly 3 percent of its total workforce.
With the restructuring still underway, more job cuts are expected in the coming months as the company works toward completing its headcount reduction target.