In an editorial meeting just last week, we decided not to cover the TCS’ big AI push. 

The reason: there’s already too much noise around it.

Every other day brings a new headline. CEO K Krithivasan, CFO Sameer Seksaria, or the new COO, Aarthi Subramanian, boast about building TCS into “the world’s largest AI-led tech company” with “the largest AI-ready workforce” in the industry.  

The company began reporting AI services data last quarter. In mid-December, this annualised figure was $1.5 billion; by quarter-end, it reached $1.8 billion.

Building. In process. So are other companies. For a startup, projecting futuristic numbers is standard practice to drive valuation. For a bellwether, a $125 billion listed giant like TCS, one can’t ignore the sense of overcommunication.

And there are reasons. First, over the past year, the company’s shares have dipped by over 25%. From its peak valuation of $200 billion in September 2021, the decline is nearly 40%. Business hasn’t been going as planned either, after TCS lost some major clients in Q1 and Q2 of FY26. Recent big overseas bids lost to rivals include Zurich Life Insurance, Phoenix Group, and the UK’s NHS Business Services Authority (NHSBSA).

“If we look at the last couple of years, India’s entire IT industry is pivoting around AI. Barring a few, the overall size of projects we are getting is smaller, from $1 million to $ 20 million, while losing $50 million+ and $100 million+ clientele by some margins,” said a senior executive without wanting to be named. 

Second, news of the company’s 2% layoffs—often a passing mention for most firms—was everywhere when it came to TCS. The company is no longer the top destination for many candidates. Of 12 shortlisted candidates we spoke to, 9 preferred to join other companies instead. It’s too soon to say anything from these numbers but it does indicate some shift in the mindset. 

And this is worrying because TCS is India’s largest private-sector employer, employing around 6,00,000 people across the globe and has long been perceived as the “government job” of the Indian IT sector, synonymous with lifelong security.

On a quiet Sunday on 27 July, 2025, TCS announced plans to lay off  around 12,000 employees–about 2% of its workforce–as part of its transformation into the “world’s largest AI-led tech services company”.