Tata Consultancy Services (TCS) made waves on Monday after announcing a massive round of layoffs affecting more than 12,000 employees. The company’s stock slipped in early trading, and everyone’s wondering—what’s the real impact, and what do analysts expect for TCS’s future?
TCS Shares Take a Dip
Let’s start with the numbers. Shares of TCS opened strong at Rs 3,110.00, even reached a high of Rs 3,118.00, but quickly lost steam after news broke of the major workforce cuts. By 10:37AM, TCS stock was down 1.12%, trading at Rs 3,100.80—a drop of Rs 35.00 for the day. Despite today’s softness, TCS still sits comfortably above its 52-week low of Rs 3,056.05, though it’s a long way from that 52-week high of Rs 4,592.25.
What’s Fueling the Layoffs?
The fresh cuts hit mainly middle and senior staff, with TCS leadership pointing to shifting business needs and a need to “right size” the company’s operations. Their logic? In today’s cautious tech climate, keeping certain staff levels just doesn’t make sense anymore. As of June 2025, TCS employed a global workforce of 613,069—and that number’s about to shrink.
This isn’t just a TCS thing, either. India’s top six IT players saw hiring nosedive more than 72% in Q2, with new jobs plunging from nearly 14,000 to below 4,000. TCS is also under pressure for its new “bench policy”—limiting bench time to 35 days and requiring 225 billable days each year. Some employees have even taken legal action in response.
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Analyst Opinions: Mixed, But Mostly Optimistic
So what are the experts saying? The answer: they don’t all agree.
- Citi remains skeptical, keeping a “sell” rating and a price target of Rs 3,135. The big concerns for them? Margin pressure, a slowing tech market, and skill mismatches biting into productivity. Citi wants to see improvements in margins and cash flow before getting bullish again.
- Investec, on the other hand, sees the layoffs as no big deal for TCS’s long-term prospects. They maintain a “buy” rating and set a much rosier price target of Rs 3,705.
Looking at the bigger picture, out of 51 analysts covering TCS, 32 still say “buy,” 15 recommend holding, and just 4 are bearish enough to say “sell.” Bottom line: the mood is cautious but mostly positive.
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How Is TCS Treating Its Staff?
TCS says they’re handling the layoffs as humanely as possible. Affected staff will get their full notice period pay, extra severance benefits, extended health insurance, plus support for finding new jobs and emotional counseling. CEO K Krithivasan thanked employees for their service and said these shakeups are necessary for the company’s ongoing growth and evolution.
What’s Next for TCS?
Despite the bumpy ride, TCS is doubling down on the future. Think more investment in AI, stronger international partnerships, and building up next-gen tech infrastructure—while keeping a sharp eye on client service and operational efficiency.
So, should investors worry? The answer really depends on your outlook. Sure, there are near-term hurdles and the sector as a whole is cooling off, but TCS is making moves to stay at the top of its game. If the company delivers on its strategic promises and the broader market stabilizes, TCS could bounce back stronger than ever.
One thing is for sure—you’ll want to keep TCS on your radar as Indian IT continues to adapt to a rapidly changing world.
