A recent report by Deccan Herald has sparked concerns regarding the workforce at Tata Consultancy Services (TCS), India’s IT giant. Statistics show a significant drop in employee strength, from 6,07,979 in FY2025 to 5,84,519 in FY2026—a reduction of nearly 23,000 employees in just one year. This follows last year’s announcement of 12,260 layoffs, highlighting the deepening crisis in the tech sector.

Analysts attribute this decline to the global slowdown in IT service demand and the rapid shift towards automation. However, TCS Chief HR Officer Milind Lakkad (referred as Sudeep Kunnumal in reports) remains optimistic about an ‘AI-first’ future. The company is pivoting towards Gen-AI and automation, prioritizing the upskilling of its workforce in artificial intelligence for FY2027. While traditional roles are shrinking, the demand for AI-savvy professionals is reshaping the future of employment at the firm.