TCS Q2 Results: India's largest IT company, Tata Consultancy Services (TCS), recorded a nearly 20,000 total employee count drop in the June to September quarter of the financial year 2025-26, as the firm restructures its workforce amid a push for artificial intelligence (AI).
According to the data collected from the official website, TCS's total workforce count witnessed a 19,755 fall to 593,314 as of the second quarter of the financial year 2025-26, compared to their 613,069 headcount level as of the end of the first quarter of the fiscal year.
TCS Attrition Rate
However, the IT major's investor presentation data showed that the voluntary attrition rate in TCS dropped by 50 basis points to 13.3% as of the second quarter of the 2025-26 fiscal year, compared sequentially (MoM) with 13.8% in the previous quarter of the financial year.
The company also disclosed that the percentage of women employees working in the IT major increased to 35.2%, compared month-on-month (MoM) with their 35.1% levels at the end of the first quarter of the current fiscal year.
“The 20,000 headcount (reduction) is a factor of voluntary and involuntary attrition,” said TCS chief of human resources (CHRO) Sudeep Kunnumal.
Mint reported earlier that TCS plans to cut the jobs of nearly 12,000 employees or almost 2% of its global workforce in the financial year 2025-26. The company aims to focus on restructuring plans amid the push for artificial intelligence (AI).
NITES alleges TCS downplayed layoff numbers
The Nascent Information Technology Employees Senate (NITES) alleged that the IT major has downplayed the layoff numbers and that the fact sheets of TCS ‘expose the truth,’ reported the news agency PTI on Thursday.
“This is not a minor difference. Nearly 8,000 employees, more than what TCS admitted, have disappeared from the rolls. For a company of TCS' scale, such underreporting cannot be dismissed as an error. It points to a deliberate attempt to downplay the scale of retrenchments and mislead regulators, policymakers, and the public,” said NITES, cited in the agency report.
They also alleged that the drop in total headcount is ‘deeply alarming’ given that the company's attrition rate has dropped in the second quarter.
“TCS has continued to grow revenue during the same period, proving that business performance cannot be used as a justification for such drastic cuts. TCS may present these job cuts as numbers on a balance sheet, but for us they are stories of shattered lives,” NITES said.