TCS Headcount Declines in FY26, to Hire 40,000 Freshers in FY27

Tata Consultancy Services (TCS) has reported a sharp drop in its workforce for FY2026, with headcount down by nearly 24,000 employees.

The company now has about 584,500 employees, showing a clear shift in how India’s largest IT services firm is hiring and managing talent.

HR’s View Point

Addressing concerns, Chief Human Resources Officer Sudeep Kunnumal said the decline is not mainly due to last year’s restructuring. He explained that restructuring had only a small impact.

Instead, the change came from several factors, including better productivity, increased use of automation, and changing business needs.

As TCS brings in more advanced tools, including AI-based solutions, some roles are no longer needed, while demand is growing for people with higher and more specific skills.

The company is also seeing natural exits from employees and shifting people into new roles within the organization. These changes together have led to the lower headcount.

Campus Hiring

CHRO said that even with the drop, TCS is still hiring. The company is focusing more on fresh graduates and early-career talent.

It has already made about 25,000 campus offers and plans to hire close to 40,000 freshers each year. This comes after it brought in more than 44,000 trainees last year.

This approach shows a wider shift across the IT industry. Companies are moving away from hiring large numbers of people and are instead focusing on the right skills. The goal is to build teams that can handle new technologies and changing client needs.

While there is still some uncertainty in global demand, TCS is preparing for the future. Its focus on hiring fresh talent and training employees shows a clear plan to build a lean and flexible workforce that can support long-term growth.

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