TCS Faces Backlash as ₹1,135 Crore Layoff Costs Trigger Transparency and Job Cut Row

TCS spent ₹1,135 crore on layoffs and restructuring in Q2 FY26, sparking controversy over job cuts, transparency, and alleged forced resignations as profit and headcount both declined.

Mumbai | October 10, 2025: India’s largest IT firm, Tata Consultancy Services (TCS), is under scrutiny after disclosing that it spent ₹1,135 crore on layoffs and restructuring during the second quarter of FY26. The announcement came as the company’s consolidated net profit dropped to ₹12,075 crore, while revenue stood at ₹65,799 crore—slightly below analyst expectations.

According to TCS’s stock exchange filing, around 12,000 employees, roughly 2% of its global workforce, were laid off during the period. However, employee unions have disputed these figures, alleging that several workers were pressured to resign voluntarily, masking the true extent of the layoffs.

“TCS may present these job cuts as numbers on a balance sheet, but for us, they are stories of shattered lives,” said Harpreet Singh Saluja, President of the National Information Technology Employees Senate (NITES). He called the move “corporate cruelty” and demanded a regulatory probe into the company’s employment practices.

Official data shows TCS’s headcount fell from 6,13,069 in Q1 FY26 to 5,93,314 in Q2—a net loss of 19,755 employees, nearly 8,000 more than the reported layoffs. This discrepancy has raised questions about transparency in the company’s reporting.

TCS, however, maintains that the restructuring impacted only a small segment of its workforce and that it remains committed to long-term growth. Meanwhile, the firm’s attrition rate dropped from 13.8% to 13.3%, which NITES claims indicates that many exits were management-driven rather than voluntary.

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