TCS to lay off 12,000 employees in major workforce cut… Big fall in these shares

TCS is planning to lay off about 12,000 employees, which is about 2 percent of the total manpower. However, the company said that these layoffs are not being done due to AI.

12000 employees to be fired from TCS

The trend of decline in the stock market continues on Monday as well, IT stocks are leading this decline. Actually, a news from the country's largest IT company Tata Consultancy Services (TCS) has spoiled the mood of the market.

Also Read: Nifty Slips Below 24,750 as FII Selling, Kotak Earnings Hit Sentiment

This company of Tata Group has talked about layoffs of about 2 percent of the employees (TCS layoffs). After which all IT stocks are trading with a decline.

Big fall in these shares

On Monday,TCS shares were trading 1.16 percent down at Rs 3980, HCL Tech shares were 1.15 percent down at Rs 1472 and Wipro shares were 3.61 percent down at Rs 250. Pressure is being seen in midcap IT stocks. At the same time, Sensex is trading down by about 503 points and Nifty is trading down by about 151 points at 24685.

Company gave this reason for the layoffs

Actually, TCS is planning to remove about 12,000 employees, which is about 2 percent of the total manpower. However, the company said that these layoffs are not being done because of AI. According to the company, those employees will be removed whose skills are no longer in line with the changing needs of the company.

Why TCS firing employees

Experts believe that challenges will continue in the IT sector due to global trade tensions and reduction in discretionary spending by customers. Analysts at Nuvama said that the demand environment for TCS will remain challenging in the next one or two quarters. But the company's prospects are positive due to the need for technological investment in the medium to long term.

Also Read: Bajaj Finance Shares Crash 5% After Q1 Results 2025 — Buy or Hold?

TCS quarterly report

Even though, company first quarter revenue declined by 3.3 per cent, while international sales revenue declined by 0.5 per cent. Equipment and software costs also saw a decline, which stood at 1.14 per cent of sales.

Summary

Analysts say that the impact of the reduction in BSNL-related projects is now under control, and the company has scope to increase margins. MOFSL has retained a 'buy' rating on TCS, with a target price of Rs 3,850, indicating a potential upside of up to 14 per cent.

Let us tell you, currently around 6,13,069 employees are working in TCS, Tata Consultancy Services Limited is an Indian multinational software services and consulting company.