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TCS shares decline after IT major announces to layoff 12,000 employees
New Delhi: The shares of Tata Consultancy Services (TCS) dropped nearly 2 per cent on July 28, 2025, Monday after India’s largest IT services firm by market capitalisation announced that it will lay off about 12,000 employees of its global workforce in 2025.
The stock went down 1.69 per cent to Rs 3,081.20 on the BSE. At the NSE, the counter dropped 1.7 per cent to Rs 3,081.60 in morning trade.
The IT major said it is set to lay off about 2 per cent, or 12,261 employees, of its global workforce this year. Giving details of the job losses, the firm said the majority of the workforce belonging to middle and senior grades would be impacted.
As per the financials of the company, TCS had a workforce of 6,13,069 June 30, 2025. The IT services provider recently hired 5,000 employees in the April-June quarter of 20-25-26.
TCS statement read that the layoff decision was part of the company's broader strategy to become a "future-ready organisation" and emphasis on investments in AI deployment, technology, market expansion, and workforce realignment.
"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," it said.
The impacted employees will be provided with outplacement, counselling, and other support, TCS said in its statement.
Tata Consultancy Services declared its Q1 Results for 2025-26 on July 10, 2025. The country’s largest IT services company declared a 6 per cent increase in its June quarter at Rs 12,760 crore as compared to a net profit of Rs 12,040 crore in the corresponding period last year.
TCS’s revenue appreciated 1.3 per cent to Rs 63,437 crore, while it stood at Rs 62,613 crore in the year-ago period. Its operating profit margin expanded 0.30 per cent on-quarter to 24.5 per cent in the April-June period.
“The continued global macro-economic and geopolitical uncertainties caused a demand contraction,” its managing director and chief executive K Krithivasan said.
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