TCS makes 25,000 fresher offers, says changing delivery models—not AI—led to layoffs

Tata Consultancy Services (TCS) has made 25,000 fresh offers for the current fiscal. The company also clarified that last year’s layoffs were driven by changes in project delivery models, not by the rise of artificial intelligence (AI).

TCS’ chief executive and managing director, K Krithivasan, told PTI that future hiring will be guided by demand visibility, underscoring a measured approach to workforce expansion in a steady but uncertain environment.

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Hiring continues, but with a watchful eye on demand

TCS has extended 25,000 offers to fresh graduates in FY27 so far, down from the 44,000 it hired in FY26. Even so, the company remains one of the largest campus recruiters in the country.

“We have made 25,000 offers for freshers in FY27. Clarity on demand will lead to more hiring,” Krithivasan said.

The company has hired over 40,000 freshers annually for at least the past three years, signalling a consistent commitment to building entry-level talent. 

Krithivasan pointed out that freshers require up to nine months of training before they become billable, whereas lateral hires can contribute almost immediately. Despite this, TCS is not shifting its hiring mix towards laterals, choosing instead to stay aligned with long-term talent development goals.

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Layoffs reflect how work is changing—not who does it

On the question of layoffs, the leader pushed back against the narrative linking job cuts to AI. The company had reduced around 12,000 roles in FY26, largely at senior levels.

According to him, the trigger was structural rather than technological. The way projects are being executed has evolved, reducing the need for certain layers within delivery teams.

As delivery models become leaner and more streamlined, the demand for senior oversight in traditional formats has diminished. The result is not a wholesale reduction in workforce, but a reshaping of where value sits within it.

Pay hikes return

Alongside hiring, TCS has resumed its annual April salary hikes, restoring its traditional appraisal cycle after a delay last year.

Chief human resources officer Sudeep Kunnumal said increments have been rolled out across eligible employees, with top performers receiving double-digit increases.

The move follows a delayed cycle in 2025, when hikes were implemented in September and ranged between 4.5% and 7% for most employees.

Workforce trends, however, remain mixed. TCS’s total headcount stood at 584,519 at the end of Q4 FY26, down from 607,979 a year earlier, even as it added around 2,300 employees sequentially.

Attrition has edged up slightly to 13.7%, from 13.5% in the previous quarter, CNBC-TV18 reported.

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A ‘stable’ demand environment, with early signs of movement

Krithivasan described the company’s project pipeline as “stable”, adding that “stable is good” in the current macroeconomic context.

He also pointed to early signs of recovery in discretionary spending, with demand emerging across geographies and sectors, particularly in cost optimisation and transformation-led engagements.

TCS reported a total contract value of $40 billion for FY26, according to PTI, alongside improved conversion of deals into revenue. Clients are also committing a higher share of work, indicating deeper, more sustained engagements.

Workplace scrutiny 

Separately, the company is facing scrutiny over a workplace misconduct case at its Nashik facility. According to CNBC-TV18, multiple FIRs have been filed alleging sexual harassment and forced religious conversion, with six employees arrested so far.

TCS said it has a “zero-tolerance” policy towards harassment, adding that employees under investigation have been suspended and that it is cooperating with law enforcement authorities.

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