India's largest IT services company, Tata Consultancy Services (TCS), announced on Thursday, October 9, 2025, that it has 'released' approximately one per cent of its workforce, equivalent to around 6,000 employees. This reduction primarily impacts mid and senior-level staff and is part of a broader restructuring exercise initiated by the company. CHRO Sudeep Kunnumal addressed widespread concerns regarding the scale of layoffs, urging the public to disregard what he termed 'extremely exaggerated numbers' circulating in media reports, some of which suggested figures as high as 50,000-80,000.

Kunnumal firmly asserted that 'a lot of these numbers are not factual, are extremely exaggerated' and reiterated that the company is 'not chasing a number' in its restructuring efforts. He clarified that the 6,000 individuals released were those at the mid and senior levels who could not be redeployed into suitable roles within the organisation.

However, the Nascent Information Technology Employees Senate (NITES), an IT workers' union, presented a contrasting view. According to a statement from NITES, TCS's official closing headcount for Q2 of fiscal year 2025-26 (FY26) was 593,314 employees, a significant decrease from 613,069 employees reported in Q1 FY26. This data suggests a net reduction of 19,755 employees in just one quarter, a figure considerably higher than the 6,000 cited by the company's CHRO. Unions have also previously disputed reported layoff numbers, accusing TCS of using pressure tactics, including threats to withhold salaries and benefits.

In July 2025, TCS had initially stated plans to lay off around two per cent, or 12,261 employees, of its global workforce during the year. This earlier move was positioned as part of the company's strategy to become a 'future-ready organisation,' focusing on investments in technology, AI deployment, market expansion, and workforce realignment. Regarding the current exercise, Kunnumal emphasized that the process was conducted with 'a lot of empathy and respect,' involving dedicated teams for empathetic conversations and benchmarked severance packages for affected individuals.

Despite the workforce adjustments, TCS affirmed its commitment to talent acquisition. The company reported hiring 18,500 people in the just-ended quarter and stressed that all existing offers to new recruits have been honored. Kunnumal confirmed that TCS remains on track for onboarding campus offers. When questioned about the previously mentioned target of over 40,000 hires for FY26, he indicated that future hiring would be based on business demand, without committing to a specific number but aiming to secure 'the best of the talent' to support the company's journey towards becoming 'the world's largest AI-led tech services company.'

Furthermore, Kunnumal announced that as TCS enters the current quarter, it would be distributing higher quarterly bonuses or variable payments compared to previous quarters. This covers virtually all employees entitled to the bonus, excluding recent new joinees. Junior-level employees will continue to receive 100 per cent of their bonus, while senior staff will receive a higher amount based on individual and unit performance.