TCS Share Price Falls 1.5% After Layoff Announcement | Skill Mismatch Behind Workforce Cut

Price today (July 28): ₹3,090, down 1.5% in early trade.
Move after announcement: TCS share price fell over 1% post the layoff news.
1-month trend: The stock is already down ~10% over the last month.

TCS Share Price Falls 1.5% After Workforce Reduction News; Management Cites Skill Mismatch, Not AI

Market Performance

The TCS share price decline comes amid company-level restructuring aimed at becoming a “future-ready organisation.”

Tata Consultancy Services (TCS) plans to reduce 2% of its global workforce over the course of the year.

Who’s most impacted: Middle and senior management bands.
Reason given: Management said the decision stems from a skill mismatch, not because “they need fewer people” or due to AI adoption pressures.
Talent approach continues: The company said it will keep acquiring, training and deploying high-quality talent where there is feasible demand.

The TCS share price reaction mirrors investor focus on how the rejig will align skills with current deployment needs.

Headcount trends across large Indian IT firms post the Covid-19 hiring boom:

TCS framed the latest move as part of building a future-ready organisation, rather than a cost-cut triggered by AI-led displacement.

TCS share price is down 1.5% to ₹3,090 in early trade on July 28.
The company will trim 2% of its global workforce, mainly at middle and senior levels.
Management attributed the move to a skill mismatch, not AI or a need to shrink overall headcount.
Headcount has already declined by 2,249 at TCS over two years, with larger reductions seen at peers.
The stock had fallen ~10% in the last month ahead of the announcement.