TCS to Cut More Jobs? Headcount Drops by 20,000

Tata Consultancy Services (TCS) HR Head Sudeep Kunnumal’s recent remarks on job cuts have reignited concerns over layoffs at India’s largest IT firm.

During the company’s Q2 earnings call earlier this month, Kunnumal addressed questions about declining headcount, clarifying that TCS is not pursuing any fixed target for layoffs.

Responding to reports that 3% of the company’s workforce — around 20,000 employees — had been laid off, he explained that the reduction resulted from both voluntary and involuntary attrition.

“The 20,000 headcount is a factor of voluntary and involuntary attrition. As we announced, against the 2% (layoffs), we have done approximately 1%. We don’t have a target,” he said.

Kunnumal added that TCS will continue to review its workforce in line with recent investments in training and skill development. “We are not chasing a target. We will continue to evaluate everyone after all the investment in learning and development that we’ve done,” he noted.

When asked if involuntary attrition would stop at 1%, he clarified, “No, I didn’t say that. We estimate it to be 2%. We are currently at 1%, and we will continue to evaluate people who we can redeploy. Employees we can’t redeploy will be released.”

TCS has faced criticism in recent months for allegedly forcing employees to resign. In July, the company announced plans to lay off 2% of its workforce — roughly 12,000 employees — as part of a strategic restructuring to focus on AI, automation, and advanced digital services, aiming to build a “future-ready organization.”

On concerns over the new U.S. H-1B visa rule requiring a $100,000 fee per application from September 21, Kunnumal said TCS had already localized its U.S. operations. “We have significantly localized our workforce in the US. Only about 500 associates are currently on H-1B visas. We believe our business model can quickly adapt to any changes in immigration policy,” he stated.