Market Cap Plummets as TCS Announces Major Workforce Reduction

Tata Consultancy Services (TCS) has witnessed a staggering loss of over Rs 28,000 crore in market capitalisation within just two days. This downturn follows the company's announcement to lay off approximately 12,000 employees globally this year, as part of its strategic shift towards becoming a 'future-ready organisation'.

Stock Performance and Financial Impact

The IT giant's shares continued to decline for the second consecutive day, closing 0.73% lower on the BSE at Rs 3,056.55. With a total two-day fall of 2.48%, TCS's market value has been reduced by Rs 28,148.72 crore, now standing at Rs 11,05,886.54 crore.

Strategic Layoffs and Future Plans

TCS plans to release about 2% of its global workforce, primarily targeting middle and senior-level employees. The company emphasizes its commitment to reskilling and redeployment initiatives, alongside providing comprehensive support to affected employees, including benefits, outplacement, and counselling services.

Industry Context

This move comes at a time when major Indian IT firms are experiencing subdued revenue growth in Q1FY26, attributed to macroeconomic pressures and global geopolitical uncertainties delaying tech spending and decision-making by clients.