TCS Layoff Controversy: 80,000 Claim vs Official 12,000 Cut

Tata Consultancy Services (TCS) is at the center of a firestorm — social media posts are claiming 80,000 employees were let go with severance, while the company maintains the real figure is much lower. 

Deccan Herald reported the rumors but noted they couldn’t independently verify such a massive number.

Official vs. Rumors: The Numbers

• In August 2025, TCS publicly confirmed layoffs of 12,000 employees globally — about 2% of its workforce. 
• The 80,000 figure comes from unverified social media claims. One user on X (formerly Twitter) alleged some severance packages ranged from 3 months to 18 months, while others allegedly got none. 
• TCS dismissed the larger numbers as “incorrect and misleading,” reiterating that layoffs are limited to 2% of its workforce.

Because rumors spread fast, many employees expressed anxiety and uncertainty. Some claimed forced exits or voluntary resignations without proper severance. 

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Met a college friend who works at TCS, and according to him, around 80,000 ( yes 80k, it’s not a typo) employees have been let go so far - some with 18 months salary, some with 3 months, and some with zero severance package. This is a staggering number, and I am sure it will…

— Soham Sarkar (@sohamtweet) September 28, 2025

Why the Discrepancy?

The huge mismatch might stem from several factors:

• Voluntary exits, retirements or internal attrition could be lumped into broader layoff rumors.
• Claims may include non-technical roles, bench layoffs, or terminations over multiple months, which official releases may not count.
• AI and automation pressures in IT are fueling speculation that companies are cutting middle-level or redundant technical staff — more than publicly disclosed. 

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Broader Industry Context

This development is not isolated. A Reuters analysis earlier flagged how TCS’s 12,000 layoffs signal a larger AI-driven restructuring across India’s $283 billion outsourcing industry. Analysts warn that 400,000–500,000 jobs could be at risk in the next few years. 

Tech firms globally are automating routine roles — coding, testing, support — leaning on AI to boost productivity. For TCS, this charted path may be less about cuts and more about rebalancing talent for the future. 

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What Investors, Employees & Observers Should Watch

• Severance clarity: whether those exiting got fair compensation across roles and grade levels.
• Transparency over attrition and role changes to separate rumors from reality.
• Reskilling initiatives by TCS for staff in roles vulnerable to automation.
• Quarterly reports — insights into operating margins, headcount, AI investment.