TCS, which is Tata Group’s most profitable entity, had in July announced a workforce reduction of 12,261 positions. (AI image)

TCS layoffs: Tata Consultancy Services, India’s largest IT services exporter, has released around 1% of its workforce, its Chief HR Officer Sudeep Kunnumal said on Thursday. Kunnumal said that around 6,000 people have been laid off, dismissing reports of higher numbers as ‘extremely exaggerated’. Kunnumal clarified that the organisation is “not chasing a number”.When questioned about potential layoffs rumoured to be between 50,000-80,000, Kunnumal firmly stated that “a lot of these numbers are not factual, are extremely exaggerated” and “should be disregarded”.Meanwhile, IT workers’ union NITES issued a statement highlighting that TCS reported a workforce of 593,314 employees in Q2 FY26, down from 613,069 employees in Q1 FY26.“This represents a net reduction of 19,755 employees in just one quarter,” the statement noted according to a PTI report.On Thursday, Kunnumal explained, “As we speak today, we are close to one per cent of people, that we have released in mid and senior level, whom we could not redeploy in the right role.”When asked to confirm if one per cent equated to approximately 6,000 individuals, Kunnumal responded, “yes, right at the mid and senior level segment”.

TCS Layoffs & Severance Packages

TCS, which is Tata Group‘s most profitable entity, had in July announced a workforce reduction of 12,261 positions, constituting about 2% of its staff, amid artificial intelligence disruptions and uncertain market conditions affecting business demand.Earlier this week, a TOI report said that TCS has implemented a structured severance programme for the approximately 12,000 staff members, mainly impacting mid and senior leadership positions. The severance packages apply to various employee categories, including those unassigned to projects, individuals lacking updated skills, and long-term employees with more than 15 years of service.Employees whose competencies became obsolete or who failed to acquire new skills received three months’ notice period compensation and additional severance ranging from six months to one year’s salary. The compensation amount was determined based on length of service, with six months’ salary as the base offering, the report said.The organisation has consistently adjusted its workforce structure to address evolving business requirements. During the 2014-15 financial year, the company reduced its workforce by over 3,000 positions, representing approximately 1% of its total staff.The layoffs predominantly affect senior and middle-management positions. It represents a significant organisational change: the integration of AI technologies whilst releasing staff unsuitable for redeployment within the company.