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TCS's recent layoffs may harm the company in the long run, Jefferies estimates in the report
TCS: Tata Consultancy Services' (TCS) decision to lay off 2 percent of its workforce, around 12,000 employees, as part of cost-cutting measures may have a negative impact on the company in the long run. Jefferies has said this in its recent report. Let's know about this in detail.
Tata Consultancy Services' (TCS) move to fire 2 percent of its staff, about 12,000 employees, as a measure of cost reduction can have an adverse effect on the company in the long term. Jefferies has stated this in its latest report.
The move, as per the report, is the company's growing concentration on maintaining margins in the face of continued growth challenges. It is the third cost-saving measure by TCS in the past three months.
Earlier, the IT giant deferred salary hikes to April 2025 and introduced new benching guidelines in June 2025. The updated benching policy now limits an employee's non-billable period to just 35 days in a year. "Focus on cost cutting may hurt TCS in the long term...: TCS's move reflects its increased focus on maintaining margins amid continued growth pressures," Jefferies said.
