Tata Consultancy Services is downsizing its workforce while reverting to regular salary increments, coinciding with a stronger emphasis on artificial intelligence implementation. The company’s employee count stood at 584,519 at the end of FY26, marking a decrease of 23,460 from the previous year.
Simultaneously, TCS has reintroduced annual salary hikes effective April, aligning with its standard appraisal schedule following last year’s delayed increments. The organization has implemented salary increases across all levels, with top performers anticipating double-digit raises, although the overall average hike remains undisclosed.
The company’s recruitment strategy has evolved to concentrate on specific areas such as artificial intelligence, cloud computing, cybersecurity, and digital engineering, signaling a transition from broad-based hiring to roles driven by specialized skills. Over 270,000 employees have attained advanced expertise in artificial intelligence and machine learning, underscoring TCS’s commitment to enhancing internal capabilities.
An increasing portion of workforce allocation is now managed through AI-driven systems, streamlining project assignments and reducing reliance on external hiring. By focusing on internal upskilling and leveraging AI technologies, TCS is adapting its workforce model to absorb growing work demands.
The evolving landscape at TCS emphasizes the shift towards skill-based performance evaluations over seniority, with opportunities expanding in alignment with AI and digital trends. While the company continues to expand, its workforce strategy is transforming, with headcount, recruitment, and remuneration no longer following traditional patterns.