TCS to Cut 12000 Jobs, Stock Falls 2% on Layoff Announcement

Tata Consultancy Services (TCS), India's largest IT services company, is in the news in July 2025 after announcing it will lay off more than 12,000 employees. The announcement has sent shock waves across the financial markets, impacting the TCS share price today and raising the debate about the future of the Indian IT sector. In this article, we breakdown the facts behind the news, we analyse the reasons for the fall in share price and we focus on TCS's outlook for investors and employees.

Current TCS Share Price:

• BSE: Rs 3,092.80 (down by 1.33%)

• NSE: Rs 3,091.10 (down by 1.43%)

• Opening Price: Rs 3,110-3,113

• Day's Low: Rs 3,081.20

TCS Share Price Today

On July 28th 2025, TCS share price opened at Rs 3,110 on the NSE and dropped to a low intraday price of Rs 3,081.60. By mid-morning, TCS shares were quoted at approximately Rs 3,091 which was a loss of about 1.43% to the previous day's close value. TCS was now in the top losers among all the stocks in the Nifty IT index, where we also witnessed the business peers of TCS such as Infosys and Wipro in decline. 

Investors' response to the company's announcement of 'major restructuring plans' - involving a restructuring of 2% of its global workforce - representing more than 12,000 jobs in FY2025-26; had likely sparked a negative reaction among the rest of the market, negatively contributing to the overall decline in the IT sector- and exerting downwards pressure on TCS share price today.

Why TCS Laying Off Employees?

A common question we've seen in light of the news is: why has TCS decided to lay employees off now, when the demand for tech jobs is high globally? According to TCS management, they are not laying employees off purely because of automation or artificial intelligence, but a mismatch between the skill sets of their employees and new business needs resulted in the layoffs.

Of its total layoffs of 12,000 employees, TCS has stated that the layoffs will not mostly affect junior employees but bandwidth and senior-level employees, whose skills are mismatched with the latest human capital resource project needs. CEO K Krithivasan made it quite clear that the TCS layoffs was a steps to make TCS "future-ready", so the company can keep a competitive edge as technology and clients needs change rapidly. TCS's shift in its current bench policy also played a part in the layoffs, which now are adjusted that TCS must have at least 225 billable days per employee a year, and maximum 35 unassigned days per year.

TCS Share Falling Reason

The TCS share price decline doesn't happen in isolation of layoffs. TCS has recently reported a modest net profit growth of 4.38% in Q1 FY26, but this is overshadowed by a 1.6% decline in operating revenue sequentially. Market experts are seeing a general decline in the IT sector, an increase in mismatched skills, and increased internal goals from the new bench policy. 

In addition, TCS has faced lawsuits from employees unions over changing conditions and rising attrition. TCS attrition rose to 13.8% in the last twelve month from 13.3% just last quarter indicating more strain on holding talent.

What Does TCS Offer to Laid-Off Employees?

TCS is laying off staff with significant support package to mitigate the impact on departing employees. The support package includes the following: full remuneration for notice period, severance payment, extended insurance coverage, career transition support and counselling. Their goal is to not disrupt client services and to provide transitioning employees with support.

TCS Share Price Performance - Historical Data

Recent Stock Performance:

• Past 1 Month: Down 10%

• Past 6 Months: Down 23%

• Past 1 Year: Down 30%

• Past 5 Years: Up only 33% The stock is currently trading at 12.0 times its book value, and the company has delivered a disappointing sales growth of just 10.2% over the past five years.

TCS Share Price Target

With all the headlines, investors want to know: what is the target price for TCS shares? Here is how analysts see it:

• Citi set a target price of Rs 3,135, but maintained a "sell" rating, because of declining margins and macro weakness.

• The analyst consensus for next year varies between Rs 3,135 and Rs 3,761.

• From a charting basis, the target short-term trading range is between Rs 3,048 - Rs 4,213, depending on how TCS executes a successful restructuring and navigates shifts in technology.

There is some long-term optimism if TCS can lower its costs and continue investing in the growth areas of artificial intelligence, cloud and digital transformation.

Conclusion

To conclude, today’s TCS share price reflects investor worry over the company’s major restructuring initiative and uncertain future business environment. The reasons for the TCS share price decline include profit margin pressures, slower revenues, and the difficulty of resetting the company’s workforce for the future. Nonetheless, if TCS’s strategy succeeds and new talent covers key gaps, the long-term TCS share price target could still provide upside for patient investors.

Disclaimer : This article is for educational purposes only and should not be considered as investment advice. Always consult with a financial advisor before making investment decisions.

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