Tata Consultancy Services (TCS) reported a sharp decline in its workforce for the July–September quarter (Q2 FY26), marking one of its steepest quarterly drops in recent years. The company’s total headcount fell to 5,93,314 employees, down from 6,13,069 in the previous quarter — a reduction of 19,755 employees.
According to the company’s fact sheet, the voluntary attrition rate for the quarter rose to 13.3 per cent, compared with 12.3 per cent in Q1. The decline in headcount and the uptick in attrition come as the IT major undergoes a strategic restructuring aimed at improving efficiency and aligning talent with business priorities
Following the company’s quarterly results, Sudeep Kunnumal, CHRO, TCS, said that about one per cent of the workforce — roughly 6,000 employees — were released as part of the restructuring exercise. He clarified that these exits were largely at the mid and senior management levels and dismissed reports of large-scale layoffs as “exaggerated.”
Industry sources and employee groups, however, noted that the reduction reflects a combination of attrition, non-replacement hiring, and internal redeployment challenges. The Nascent Information Technology Employees Senate (NITES) confirmed the closing headcount and highlighted that the latest quarter’s figures represent a drop of nearly 20,000 employees, a significant contraction for the country’s largest IT employer
Earlier this year, TCS had indicated plans to trim around two per cent of its global workforce—approximately 12,000 employees—primarily in mid and senior roles, while maintaining its hiring target of over 40,000 for fiscal 2026.
The steep reduction underscores the company’s cautious approach amid a volatile global technology market, where subdued demand and delayed client spending have prompted Indian IT firms to focus on operational discipline, role optimisation, and profitability over headcount expansion.
