TCS Faces Market Setback Amid Staffing Realignment

Tata Consultancy Services (TCS) has faced a valuation loss of Rs 28,148.72 crore over two days following an announcement to cut 12,000 employees. The firm's workforce realignment strategy is part of becoming a 'future-ready organisation.' The layoffs will mostly affect middle and senior-grade employees.

Tata Consultancy Services (TCS) has experienced a sharp drop in its market valuation, losing Rs 28,148.72 crore over two consecutive days. This downturn follows the company's announcement of a significant workforce reduction. TCS plans to lay off about 12,000 employees as part of its broader strategy to adapt to future demands.

On Tuesday, the stock price of this IT giant fell 0.73% on the BSE, closing at Rs 3,056.55 per share after reaching an intraday low of Rs 3,041. The decline continues a downward trend, with TCS shares decreasing nearly 2% the previous day.

The layoffs, affecting around 2% of its global workforce, are concentrated in middle and senior management positions. This move aligns with TCS's focus on investment in technology, AI, market growth, and workforce realignment amidst a challenging economic backdrop.

(With inputs from agencies.)