Mumbai, October 9: The Workforce of the Tata Consultancy Services (TCS) witnessed a significant decline in the second quarter of FY26, as the company undertook strategic layoffs and restructuring. The Mumbai-based IT giant saw its headcount drop by 19,755, bringing the total number of employees to 6,13,069. This reduction follows the company’s plan to let go of roughly 12,000 staff, around 2 per cent of its workforce. The layoffs coincided with a reported consolidated net profit of INR  12,075 crore and revenue of INR 65,799 crore for the quarter.

As reported by Money Control, the decline in TCS’s workforce came despite a slight drop in attrition, which fell to 13.3 per cent from 13.8 per cent in the previous quarter. The company incurred restructuring expenses of INR 1,135 crore in Q2 FY26 as part of its plan to realign roles and streamline operations across various business units. This strategic trimming is seen as a step to enhance operational efficiency while preparing the workforce for emerging technology demands. TCS Q2 Results 2025: Tata Consultancy Services Net Profit Falls 5% Sequentially to INR 12,131 Crore.

The IT major has also highlighted its ongoing investment in employee upskilling, with over 3.3 crore learning hours logged and more than 26 lakh competencies acquired year-to-date. Approximately 1.6 lakh employees are now proficient in artificial intelligence and machine learning, reflecting the company’s focus on building expertise in high-demand technology areas. According to Money Control, TCS sees this as crucial for sustaining long-term growth amid evolving industry dynamics. TCS Severance Package: IT Giant Sets 6-Month Minimum Payout for Laid-Off Employees; Long-Serving Staff To Get up to 2 Years’ Pay.

Further, the company’s margins showed resilience despite the headcount reduction, with the operating margin expanding by 70 basis points to 25.2 per cent and the net margin improving to 19.6 per cent. Revenue grew sequentially by 3.7 per cent, while net profit fell slightly below Street estimates. As reported by Money Control, TCS continues to pursue strategic investments, including building AI infrastructure and acquiring companies like ListEngage to strengthen its technology and service offerings.

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