India’s largest information technology (IT) firm, Tata Consultancy Services (TCS), recorded a one-time restructuring expense of Rs 1,135 crore in the September quarter (Q2FY26) as it moved ahead with its plan to trim its workforce and realign roles across the organisation.
The exceptional item, classified under restructuring expenses, dragged the company’s reported consolidated net profit to Rs 12,075 crore, according to the company’s exchange filing on October 9.
The Mumbai-headquartered firm’s revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms. This was slightly below Street estimates.
A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore.
Layoffs ripple across ranks
The Rs 1,135 crore charge comes two months after CEO K Krithivasan told Moneycontrol exclusively that TCS would cut 2 percent of its workforce, around 12,000 employees, during the fiscal year as part of a phased restructuring targeting mid- and senior-level roles.
But inside the company, panic and uncertainty have spread. Employees and IT unions claim the actual number of exits is far higher, alleging that many are being asked to resign voluntarily to keep official layoff numbers low.
However, over the past few months, unions including the All India IT & ITeS Employees’ Union (AIITEU), Forum for IT Employees (FITE), and Union of IT & ITES Employees (UNITE) have held protests and campaigns against what they call “forced resignations” and “coerced exits.”
A source close to the company dismissed these claims, calling them “incorrect and misleading.”
“As communicated earlier, the impact is limited to 2 percent of our workforce,” a TCS spokesperson said.
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