Tata Consultancy Services (TCS) has seen a massive fall in terms of market capitalisation, where it has lost 28,148.72 crore in two consecutive trading sessions. This decline comes after the company announced the layoff of 12,261 workers, which is approximately 2% of the total workers spread across the world. This is in the context of the wider restructuring process that TCS has undergone in operations as it attempts to concentrate on the new technologies, especially artificial intelligence (AI).
On Tuesday, TCS shares maintained negative momentum. On the Bombay Stock Exchange (BSE), the stock declined 0.73% to end at 3,056.55 after trading to an intra-day low of 3,041. The stock dropped 0.72% to close at 3,057 on the National Stock Exchange (NSE). This, along with the 2% decline on Monday, made a total two-day decline of 2.48% that hit the market capitalisation to 11,05,886.54 crore.
TCS is laying off employees as part of its future-ready organisation strategy to streamline its workforce. The company made it clear that the job cuts will mainly affect middle and senior-level employees across all operations worldwide. In 2025, TCS had 6,13,069 employees (as of June 30, 2025), and it had recruited 5,000 employees in the same quarter.
TCS, in its official statement, added that it has been pursuing multiple reskilling and redeployment programs to align its workforce with its future business needs. Those employees who cannot be redeployed will be released throughout the year. The company made it clear that the affected employees will be provided with the due benefits, counselling, and outplacement services.
The layoffs accompany a general slowdown in India's IT industry. Many companies, such as TCS, experienced poor revenue growth during Q1 FY26 due to late client purchasing decisions and macroeconomic effects globally. They attribute the layoffs and operational changes to automation, digital services, and cost optimisation that are taking shape in the industry.
The focus on AI and expansion into the market demonstrated by TCS indicates the increased role of new technologies in long-term business development. However, in the present market performance, investors are being cautious since the company is going through a tough economic period.