Shares of Tata Consultancy Services (TCS) declined 1.6% to ₹3,085.6, a two-year low on July 28 (Monday) after the IT bellwether announced a 2% reduction in workforce.
The stock opened at about 0.8% lower than the previous close of ₹3,110. It briefly touch a high of ₹3,118 before midday and declined to ₹3,069 before settling at the day’s close price.
The previous lower decline was reported on April 19, 2023, when the company’s stock closed at ₹3,075.35 a share.
The decline also reflected on the NIfty IT index which fell 0.71% to 35,370.05 points. “I believe that it [job cut] may be something that would be a precursor to a other large cap IT companies which have not shown growth amid AI disruption,” said Sushovon Nayak, research analyst at Anand Rathi Institutional Equities.
Although CEO K. Kirthivasan reportedly clarified that this was not on account of AI taking over jobs, experts felt that this was to adjust for AI-induced productivity. “I think they have basically taken a decision based on from what are those potential roles that may become redundant on account of AI which is coming in,” Mr. Nayak said adding that this was part of the global trend where BigTech like Microsoft and Amazon are implementing job cuts to accommodate AI.
Published – July 28, 2025 11:45 pm IST