Inside TCS Layoff Strategy No Target Just Evaluation

Inside TCS Layoff Strategy No Target Just Evaluation

Last Updated Oct - 15 - 2025, 03:36 PM | Source : Fela News

TCS HR chief explains careful layoffs strategy combining flexibility redeployment and no fixed targets.

In a recent Q2 earnings call, Sudeep Kunnumal, HR chief of Tata Consultancy Services (TCS), took center stage to allay growing concerns about potential layoffs at India’s biggest IT services firm. He emphasized that TCS is not chasing arbitrary job cut targets; rather, the company will “evaluate everyone” while prioritizing thoughtful redeployment over mass exits. 

Kunnumal acknowledged that TCS has already effected about a 1 percent workforce reduction, attributing it partly to voluntary exit or attrition. But he cautioned that this was not a fixed quota: “We are not chasing a target,” he reiterated, while clarifying that further reductions would depend on redeployment feasibility. 

An analyst probed whether involuntary layoffs beyond the 1 percent level were off the table. Kunnumal responded: “No, no, I didn’t say that we estimate it to be 2 percent. We are currently at 1 percent, and we will continue to evaluate people whom we cannot redeploy.” This suggests that while excess cuts aren’t the plan, they could occur selectively if roles are unfillable internally.

One of the more sensitive topics discussed was the recent shift in US H 1B visa policies, especially the newly imposed annual fee of $100,000 for applications. Kunnumal noted that TCS has already localized much of its US workforce, with only around 500 associates currently travelling on H 1B status. He expressed confidence that TCS’s business model is resilient to changing immigration regimes. 

What emerges is a nuanced posture: TCS is sending a message to the market yes, the company is managing costs, but it is not recklessly slashing jobs. The emphasis remains on training, redeployment, and evaluating talent before termination. While net headcount may see further reductions, those moves will reportedly be surgical rather than sweeping.

For employees, this means one clear signal: staying skill relevant and adaptable is more critical than ever. And for the broader industry, Kunnumal’s stance sends a signal that layoffs may be inevitable but not arbitrary.

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