TCS headcount fell by 23,460 in FY26; but no more layoffs for now: Sudeep Kunnummal, CHRO

India’s largest IT services firm Tata Consultancy Services (TCS) has reported a sharp decline in its headcount for the fiscal year 2026. The company ended the March quarter with a total workforce of 584,519, down 23,460 from the year prior.

However, the company has signalled the end of its restructuring phase and articulated aggressive campus hiring plans while announcing its Q4 FY26 results on April 9.

“We have already made 25,000 campus offers in India and remain on track to hire around 40,000 freshers annually,” the company’s chief human resource officer Sudeep Kunnummal told TOI.


Kunnummal added that TCS onboarded 44,000 trainees in FY26, and in the latest quarter, the company reported a net addition of 2,356 employees sequentially, supported by a mix of lateral hiring and fresher onboarding.

No more layoffs

In a statement, TCS also confirmed that its previously announced layoff cycle has now concluded. In 2025, the company had indicated plans to reduce approximately 2% of its workforce, alongside implementing stricter bench policies, which particularly impacted mid and senior-level employees.

Despite renewed hiring momentum at the entry level, TCS has not provided a hiring outlook for FY27, presumably because global demand visibility remains unclear with clients continuing to exercise caution on discretionary tech spending.

Also Read: TCS Q4 FY26: Attrition rises to 13.7%; 2,356 employees added during the quarter

AI threat

Responding to suggestions that the Indian IT services industry could be dead by 2030, TCS CEO K Krithivasan argued that the rise of artificial intelligence (AI) would, in fact, deepen enterprise reliance on technology partners.

“Enterprises will need support from firms like TCS to fully realise the benefits of AI,” he said, positioning the company as a critical enabler in the next phase of digital transformation.

The software services company posted a 12% rise in net profit, at Rs 13,718 crore, in the March quarter, while revenue rose 9.6% to 70,698 crore. Sequentially, profit was up 19.4% and revenue 5.4%.

Krithivasan said TCS is “getting into next year with a lot of positivity and confidence,” while remaining cautious due to the war in West Asia.

Also Read: TCS rides AI demand; mega deals power Q4 results