TCS To Cut 12,000 Jobs In FY26; SEBI RA Flags Weak Chart, Bearish Setup Below ₹3,050

IT major Tata Consultancy Services (TCS) will reduce its workforce by 2%, approximately 12,000 jobs, over FY26. The move will primarily impact middle and senior-level employees, as well as some entry-level staff who have been on the bench for extended periods.

The development comes as part of a restructuring push focused on skill alignment and resource deployment. 

The layoffs will be carried out over the next three quarters and will not be limited to any specific geography or domain. Impacted employees will receive notice period pay, a severance package, continued insurance coverage, and outplacement assistance. 

The move comes shortly after TCS revised its HR policy, capping bench time at 35 days and requiring employees to maintain 225 billable days annually.

At the time of writing, shares of Tata Consultancy Services were trading at ₹3,103.50, down 1.03% on the day.

Brokerages were cautious in their reactions. 

Jefferies said the layoffs may result in short-term execution risks and could push up attrition over the longer term. The firm prefers Infosys and HCLTech in the large-cap IT space. Citi Research maintained its 'sell' rating on TCS with a target of ₹3,135, citing muted earnings and pressure on margins and cash flow, according to reports.

SEBI-registered analyst Prabhat Mittal said the stock's technical setup remains weak. 

“Stock is making lower tops and lower bottoms in medium-term chart, which is a negative sign for it,” Mittal said. 

It’s also trading below the 20, 50, 100, and 200-day moving averages, he noted. 

Mittal added that the Moving Average Convergence Divergence (MACD) indicator is currently generating a sell signal. He advised traders to consider selling only if the stock breaks below ₹3,050, with a strict stop loss at ₹3,150 and downside targets at ₹2,800 and ₹2,600.

On Stocktwits, retail sentiment was ‘extremely bearish’ amid ‘low’ message volume.

The stock has declined 24.6% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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