TCS Share Price Dips as Tech Giant Announces Mass Layoffs Affecting 12,000 Employees; What Analysts Expect?

Tata Consultancy Services (TCS) shares fell marginally following the company's announcement of a significant workforce reduction impacting over 12,000 employees this year. The decision primarily targets middle and senior-level roles to better align the company's resources with evolving business needs.

The IT giant reported a global workforce of 613,069 employees as of June 2025 and stated that maintaining current deployment levels for some associates is not sustainable amid current market conditions.

TCS Share Price After Layoffs Announcement

NSE: TCS; Shares of TCS were trading at Rs 3,100.80 as of 10:37 AM on July 28, reflecting a decline of Rs 35.00 or 1.12% for the day. The stock opened slightly higher at Rs 3,110.00 and reached an intraday high of Rs 3,118.00 before slipping to a low of Rs 3,081.60.

Despite today's dip, TCS remains well above its 52-week low of Rs 3,056.05, although it is still some distance from its 52-week high of Rs 4,592.25.

Analyst Views on TCS Share Price; Check Price Targets for TCS Stock

Brokerage firms remain divided on TCS shares following the layoff news. Citi has maintained a "sell" recommendation with a price target of Rs 3,135, citing pressure on margins, demand slowdown, skill mismatches and productivity concerns as key reasons.

Citi also highlighted the need to closely monitor margin and cash flow trends in the near term given the company's recent sluggish performance in core markets.

In contrast, Investec continues to maintain a "buy" rating on TCS with a higher target price of Rs 3,705, viewing the workforce reduction as relatively immaterial to the company's overall outlook.

Among 51 analysts covering TCS, 32 recommend "buy," 15 suggest "hold," and only 4 maintain a "sell" stance, reflecting cautious optimism despite near-term challenges.

TCS Layoffs 2025

TCS's workforce reduction comes amid a broader slowdown in India's IT sector. Data from the April-June quarter shows recruitment across India's top six IT firms fell sharply by over 72%, with new hires dropping from 13,935 in the previous quarter to just 3,847. TCS is also facing legal challenges from employees related to its new "bench policy," which limits unassigned time to 35 days per year and requires employees to achieve 225 billable days annually.

The company emphasised its commitment to managing the restructuring process responsibly, ensuring uninterrupted client service while offering affected employees full notice period pay, additional departure benefits, extended insurance coverage, career transition support, and counselling during the transition period.

"This includes strategic initiatives on multiple fronts, and while these changes are necessary for our growth and evolution, we understand the impact on our colleagues. We thank them for their service and are committed to supporting them through this transition," TCS CEO K Krithivasan said in an email to employees.

Despite these challenges, TCS remains focused on strategic priorities including advancing emerging technologies, expanding market presence, implementing AI solutions, strengthening partnerships, and enhancing infrastructure.

Disclaimer

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