According to People Matters, “TCS loses top talent fast: 300 senior exits amid layoffs and variable pay cuts”, published in April 2026, over 16% of the company’s top 1,800 leaders exited within eight months. The departures include principal consultants, vice presidents, and senior vice presidents. Many had long tenures and handled client delivery and large teams. Earlier, attrition at senior levels remained between 4–5% annually. However, IT industry layoffs have now pushed leadership churn to new levels.
Workforce reduction reshapes leadership structure
At the same time, the company reduced around 12,000 roles, which equals nearly 2% of its workforce. This workforce reduction aligns with a shift toward AI-led delivery models and tighter client budgets.
Earlier, Tata Consultancy Services depended on internal mobility and long-term roles to retain senior talent. Leaders often stayed for years and moved across projects and geographies. However, IT industry layoffs and structural changes have weakened that pattern. Now, role definitions are changing faster. Teams are getting leaner, and delivery cycles are becoming shorter. As a result, senior leaders are expected to handle wider responsibilities with fewer resources.
Also, leaders reported receiving less than 10% of their variable pay over two years. This gap between effort and reward has increased frustration. Many executives managing large accounts and teams have started exploring external opportunities.
Impact of IT industry layoffs on operations
Attrition reached 13.5% in the December quarter. Similar trends appeared at Infosys, HCL Technologies, and Cognizant. However, exits at senior levels affect execution more than entry-level turnover. Senior leaders manage client relationships, guide teams, and ensure delivery continuity.
TCS reported $22.4 billion revenue in the first nine months of the fiscal year. Still, performance pressure increased as shares touched a six-year low. Therefore, IT industry layoffs combined with workforce reduction have raised concerns about continuity, decision speed, and client confidence
