Thousands of techies are losing their jobs as major IT players like Microsoft, Intel, Google, Amazon and more reduce their workforce. Theoretically, the main cause of mass layoffs is attributed to the stronger adoption of AI. The latest to join the bandwagon is India's largest tech company, Tata Consultancy Services (TCS).
TCS Layoffs 2025:
A mass job cut by TCS has led to panic in the IT sector. This Tata Group-backed behemoth is planning 2% cut in its total workforce, which could result in job loss for approximately 12,000 employees.
TCS released a statement, which mentioned that the layoffs will likely impact employees holding middle to senior-level positions.
The company said, "TCS is on a journey to become a Future-Ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model."
Meanwhile, TCS CEO K Krithivasan called the latest layoff as a difficult but necessary step to build a stronger TCS.
To the employees who will be sacked, TCS has vowed to provide severance packages and notice period compensation. Also, TCS announced that it will offer insurance coverage and career transition support.
The TCS job cut has sparked outrage of employees union and is also on the radar of Ministry of Electronics and Information Technology (MeitY).
Sources told MoneyControl that MeitY is keeping a close eye on the developments surrounding IT giant Tata Consultancy Services' (TCS) decision to lay off around 2 per cent of its workforce. The sources revealed that in the days to come, the government is likely to expect industry and academia to address issues related to skilling and re-skilling.
Meanwhile, employees' unions are calling the layoff as illegal and are motivating TCS employees who would be impacted to stay firm against the resignation pressures. Also, the Karnataka State IT/ITeS Employees Union demanded that TCS revoke the job cuts plan.
In its Q1FY26 preview note, Axis Securities analysts said, "Since the last few quarters, clients of Indian IT Services have been cutting their IT budgets due to economic uncertainty, especially in the US and Europe. Many large enterprises are likely to prioritise cost optimisations, resulting in an increase in cost take-out deals, vendor consolidation, and a reduction in headcount costs."
Is TCS's layoff the largest in the industry in India and globally?
Firstly, the 12,000 job cuts are the largest in India in the current year. As of the June 2025 quarter, TCS's total headcount stood at 613,069 employees. Notably, TCS' latest layoff comes after it became the largest hirer among the top 5 Indian IT players during the April-June 2025 quarter.
TCS hired 5,090 employees in the March 2025 quarter, the largest by multi-fold compared to Infosys, while HCL Tech, Wipro, and Tech Mahindra reduced their headcounts.
But TCS is not carrying out the largest layoff of 2025 by a tech company, at least till now. That title belongs to mega US-based tech giants like Microsoft and Intel, among others.
But TCS is carrying out the third largest layoff in the world in 2025 under its industry.
Microsoft Layoffs:
In July alone, Microsoft launched another fresh round of mass 9,000 layoffs, which came after 6,000 workers were removed in May. Also, in January, Microsoft let go of 2,280 employees, and another 2,000 jobs cut in April. The Bill Gates-backed company reduced its workforce by nearly 4%.
Microsoft has carried the second largest layoff in 2025 under the sector.
Intel Layoffs:
Intel is trimming about 20% of its workforce, which would translate to around 10,000 job reductions. Also, the company is closing its automotive chip division.
The layoff is reportedly scheduled for mid-July 2025.
According to Trueup. oi data, Intel's workforce reduction is about a whopping 21,400. Meanwhile, other reports stated that in total, Intel is cutting over 24,000 jobs, making it the largest layoff of 2025 by a tech company.
Amazon Layoffs:
Earlier this month, it was reported that Amazon's AWS cloud computing unit has also cut hundreds of jobs. This comes after in January 2025, the largest e-commerce player reduced its workforce by 1,900 employees.
Meta Layoffs:
So far, the Mark Zuckerberg company has reduced its workforce by 3,600. This layoff took place in January 2025.
Google Layoffs:
The largest search engine has also reduced its Google TV team by 25%, which comes to around 75 jobs cut. Additionally, Google cut its TV unit workforce by 1o%.
Panasonic Layoffs:
This company reduced its workforce by 10,000 employees in May 2025, in order to drive its profitability.
Click it and Unblock the Notifications
Sign in with Google