TCS Layoffs 2025: 12,000 Jobs Cut as AI Investment Reshapes Workforce

The TCS layoffs 2025 have sent shockwaves across the IT industry as Tata Consultancy Services, one of India’s biggest tech employers, confirmed the termination of nearly 12,000 employees around 2% of its global workforce. This move comes amid a dual strategy of aggressive AI adoption and cost-cutting measures.

Mass Layoffs Across All Levels

According to reports, the layoffs affected employees across all seniority levels, from freshers to senior managers. Many employees allege that these were not voluntary exits but rather “forced resignations” masked as cost optimization.

A former TCS mid-level employee told The News Minute that they were offered three months’ salary as an “incentive” to resign, but if they refused, termination without compensation was the alternative.

Employees also reported that before meetings with HR, they were asked to switch off their phones a move many saw as a tactic to prevent recording or sharing details.

The Controversial Bench Policy

One of the central triggers for the TCS layoffs 2025 is the company’s bench policy a practice where employees without client projects are kept “on the bench” while awaiting reassignment.

Recently, TCS reduced the bench period to 35 days. If an employee cannot secure a project in that time, they face termination or forced resignation.

While traditionally bench layoffs were limited to unassigned employees, this wave has hit even those actively working on projects, with emails stating their roles were “non-critical.”

Layoffs by the Numbers

• 12,000 jobs lost globally (estimated)
• 300 forced resignations in TCS Bengaluru in a single week
• 50 employees on average leaving daily during the peak layoff period
• Attrition rate spiking to 13.8% a two-year high

Many in the tech community speculate that the actual number of impacted employees is much higher, as official counts often omit those who resigned under pressure.

Impact on Freshers and Junior Staff

According to online discussions, freshers and junior-level employees are particularly vulnerable. Many are placed in high-pressure projects with unrealistic deadlines.

If performance doesn’t meet expectations, employees face warnings that not only affect their job security but also damage appraisal ratings and promotion prospects.

Timing and Salary Hikes

What’s puzzling for many is that TCS layoffs 2025 came just days before the company announced annual salary hikes for 80% of its workforce junior to mid-senior level staff.

• India-based employees: salary hike ranging from Rs 15-35 lakh annually
• Employees abroad: 2-8% wage increment

Critics allege that the layoffs are a way to avoid paying raises to some employees.