Amid growing speculation about job cuts in the IT sector, Tata Consultancy Services (TCS) has clarified that it has no fixed layoff target and that employee evaluations will be conducted carefully and transparently. The company emphasized that any workforce restructuring will be guided by performance metrics and business requirements — not arbitrary headcount targets.
In an internal communication and subsequent media briefing, TCS Chief Human Resources Officer Milind Lakkad stated that the company continues to focus on “performance-based evaluation” as part of its regular workforce management process. He noted that TCS is not pursuing any mass layoff plan but will “release staff with care” where necessary.
“We Will Release People with Care,” Says TCS HR Head
Addressing concerns about reports of job reductions, Lakkad explained,
“We do not have any fixed target for layoffs. We are continuously evaluating employees based on performance and project needs. Wherever necessary, we will release people with care and empathy.”
He added that the company’s priority remains retaining skilled employees, reskilling existing talent, and preparing its workforce for emerging technologies such as AI, cloud computing, and automation.
Background: Performance Evaluation, Not Downsizing
Earlier reports suggested that TCS had released around 1% of its workforce, equivalent to nearly 6,000 employees, as part of a restructuring exercise. However, the company clarified that this was a normal annual process, where underperformers are identified and guided out, while new talent is simultaneously brought in.
The IT major currently employs over 6 lakh people globally, making it one of the largest employers in the private sector. Despite global economic uncertainty, TCS has continued hiring fresh graduates through its National Qualifier Test (NQT) and remains committed to its long-term growth plans.
Industry Context
The clarification comes at a time when the global IT industry is facing pressure due to macroeconomic challenges, slower deal conversions, and clients reducing discretionary spending. Several IT giants, including Infosys, Wipro, and Cognizant, have also been tightening workforce policies and focusing on efficiency.
Analysts note that TCS’s measured approach — emphasizing “careful evaluation” over mass layoffs — aligns with its reputation for stability and employee-friendly policies.
Focus on Reskilling and Internal Mobility
TCS continues to invest heavily in upskilling programs through its in-house platforms like iON and Digital Learning Hub, encouraging employees to shift into AI, data, and cloud-based projects. The company believes this approach will minimize job losses and maintain a balanced workforce.
