In an exclusive interview with Zee Business Managing Editor Anil Singhvi, Tata Consultancy Services (TCS) clarified that its recent 2% workforce reduction is part of a larger strategy and not a sign of slowdown or cost-cutting.
Sudeep Kunnumal, TCS Chief HR Officer, said the move should not be misunderstood. “The 2% reduction is not linked to cost-cutting or AI automation. This is part of our big strategy to become the world’s largest AI-led technology services company,” he explained.
Tata Consultancy Services (TCS) reported a sharp fall of nearly 20,000 employees in the September quarter (Q2 FY26), with its headcount dropping to 5,93,314 from 6,13,069 in the June quarter, as the company restructures its workforce to align with changing business needs.
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Mid and Senior Levels Impacted
The company had earlier indicated plans to cut about 2% of its workforce, or over 12,000 employees, this year, mostly at mid and senior levels.
The CHRO admitted that the rationalisation was focused on the higher end of the pyramid. “At mid and senior levels, if some people cannot scale up, we are releasing them—but with care, respect, and strong benefits support,” he said, stressing that employees are being transitioned with dignity.
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Fresh Hiring Shows Confidence
While trimming certain roles, TCS also added 18,500 new employees in the same quarter. “We are investing in skilling. In fact, we have doubled the number of employees with deep AI/ML skills compared to last year,” the HR head told Zee Business.
Attrition at TCS has now dropped to 13.3%, one of the lowest in the sector. The management believes this reflects stability and confidence in the company’s growth trajectory.
Clear Message to Freshers
Reassuring young job-seekers, the CHRO said TCS will remain a top recruiter. “TCS has always been one of the best employers. We continue to visit campuses, hire talent, and offer career-building opportunities. Nothing has changed—we remain fully committed to freshers and their growth,” he asserted.
