Tata Consultancy Services (TCS) has addressed growing speculation around potential layoffs, with Chief Human Resources Officer Sudeep Kunnumal stating that the company is not pursuing any fixed headcount reduction targets.
His comments came during the Q2 FY26 earnings call, where analysts raised questions about the recent decline in workforce numbers and future restructuring plans.
TCS CHRO: No Layoff Targets, Evaluations Will Continue
Sudeep Kunnumal emphasized that TCS is not chasing a numerical target for layoffs.
Instead, the company is conducting ongoing evaluations to determine whether employees can be redeployed into suitable roles.
“We are not chasing a target. We will continue to evaluate everyone,” Sudeep said, responding to concerns about further reductions following the release of 1 percent of the workforce in recent months.
This approach reflects TCS’s broader strategy of aligning talent with business needs while maintaining operational flexibility.
Sudeep clarified that the recent headcount drop of approximately 20,000 employees was a result of both voluntary and involuntary attrition, not a planned layoff campaign.
Clarification on Layoff Figures
TCS has strongly denied media reports suggesting layoffs of 50,000 to 80,000 employees.
Sudeep called these figures “extremely exaggerated” and urged stakeholders to disregard them.
He confirmed that only about 1 percent of the workforce—roughly 6,000 employees—had been released as part of a restructuring exercise.
The company stated that most of the released employees were at mid and senior levels who could not be redeployed internally.
Sudeep reiterated that TCS remains committed to managing its workforce responsibly and transparently.
TCS Headcount Trends and Strategic Redeployment
As of Q2 FY26, TCS reported a headcount reduction of 20,000 employees, marking a 3 percent decline.
This drop includes both voluntary exits and restructuring-related releases.
Sudeep explained that the company continues to assess employee roles and business requirements to ensure optimal alignment.
TCS’s approach to workforce management includes redeployment efforts, skill development, and internal mobility.
The company has not announced any hiring freeze and continues to onboard freshers and lateral hires in key areas such as cloud, AI, and cybersecurity.
Visa Policy Adaptation and Global Workforce Strategy
Sudeep also addressed questions about TCS’s U.S. workforce and its adaptability to changing H-1B visa regulations.
He stated that the company has built a strong localized talent pool in the U.S., reducing dependency on overseas work visas.
This shift aligns with TCS’s long-term strategy of building regionally diverse teams to support global clients.
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