Tata Consultancy Services reduced its workforce by 30,000 over six months, citing a restructuring drive. The company reported a headcount drop of 11,151 in Q3 FY26. This move, linked to AI adaptation, aims to enhance agility. The workforce now stands at 5.82 lakh, with further exits possible.

IT giant Tata Consultancy Services (TCS) has significantly reduced its workforce by approximately 30,000 employees over the past six months as part of an ongoing restructuring exercise that began in 2025. The company has indicated that employee exits could continue into 2026 if deemed necessary, though it emphasised that there is no fixed target and all terminations follow a structured internal process with valid reasons.

According to TCS's latest quarterly factsheet for the October-December 2025 period (Q3 FY26), the company's headcount dropped by 11,151 employees, bringing the total workforce to 582,163** from 593,314 at the end of the previous quarter. This follows a reduction of 19,755 employees in the July-September quarter, resulting in the combined net decline of around 30,000 over the two quarters.

TCS Chief Human Resources Officer Sudeep Kunnumal told Moneycontrol that the company released approximately 1,800 employees during the October-December quarter through due process, while the broader headcount drop also reflects natural attrition, non-replacement of vacancies, and slower hiring. A separate report highlighted that voluntary exits outside the restructuring (including routine attrition and other factors) topped 22,000 in the same two-quarter period.

The restructuring, reportedly influenced by the need to adapt to artificial intelligence (AI) and automation, aims to make TCS more agile and 'future-ready.' While some industry observers link the job cuts to AI-driven efficiencies, others suggest factors like cost optimisation and addressing skill mismatches play a role. TCS has stressed that it continues campus and lateral hiring in targeted areas, particularly for AI and digital skills.

The workforce reductions have heightened anxiety among employees, compounded by stricter work-from-office policies. Recent internal communications have warned that non-compliance with mandatory office attendance could delay appraisals or impact performance ratings in the 2026 cycle.

While things are chaotic at the Indian office, TCS looks to hire 15,000 employees in the US to ensure smooth operations overseas, unburdened by visa rule changes.