TCS workforce shrinks by 24,000 in FY26, says layoffs over, hiring remains on track

India’s largest IT services company Tata Consultancy Services (TCS) saw its workforce shrink by nearly 24,000 in fiscal 2026, even as the company said its restructuring-driven layoffs cycle is now complete and campus hiring remains on track.

The company ended FY26 with 584,519 employees, down 23,460 from a year earlier, according to disclosures cited in reporting by the Times of India. The decline comes after a year of workforce adjustments, tighter bench policies and voluntary exits, particularly in mid-to-senior roles.

Headcount falls after restructuring phase

TCS said the overall reduction cannot be attributed entirely to last year’s restructuring programme. CHRO Sudeep Kunnumal, in comments reported by the Times of India, said the company had already stabilised its hiring pipeline despite the decline in overall headcount.

He noted that TCS has already made around 25,000 campus offers in India and expects to continue hiring roughly 40,000 freshers annually, signalling sustained intake from universities even as overall employee numbers fall.

Hiring momentum offsets workforce decline

Despite the net reduction, TCS added 2,356 employees sequentially through a mix of lateral and fresher hiring, according to the same report. The company, however, has not provided a formal hiring target for FY27.

Kunnumal said last year’s intake included around 44,000 trainees, underscoring the company’s continued reliance on large-scale campus recruitment to replenish its workforce.

Layoffs cycle declared complete

TCS also said its layoffs programme has concluded. The company had earlier indicated it would reduce about 2% of its workforce and tighten utilisation norms, which contributed to voluntary exits across roles.

“The restructuring exercise was completed,” the company said in a statement, as quoted by the Times of India.

Growth narrative alongside workforce reset

While headcount declined, TCS leadership has sought to frame the shift as part of a broader operational reset rather than a demand slowdown, pointing to ongoing hiring activity and pipeline strength.

The company’s messaging comes as the Indian IT services sector recalibrates workforce strategies amid changing client demand patterns and increasing adoption of automation and AI-led delivery models.

TCS is positioning itself for a steady hiring cycle in campus recruitment even as it normalises its workforce after a year of restructuring. The company has indicated that its near-term focus remains on stabilising operations while maintaining access to a large entry-level talent pool.