Massive job cuts likely in Accenture and TCS, thousands of employees expected to get…, IT Sector in India to…

CEO Julie Sweet said that in FY26, the company plans to increase its total headcount across all three markets, including the US and Europe.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Published: October 8, 2025, 3:26 PM IST

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https://www.india.com/business/tcs-accenturetata-consultant-services-job-cut-it-sector-indian-economy-ratan-tata-infosys-hcl-layoffs-narayana-murthy-sap-ecc-8120489/ Copy

(Representational image: www.freepik.com)

New Delhi: The Indian IT sector is staring at a potential major crisis. While global giant Accenture has reached the upper limit of its FY25 revenue forecast, a harsh reality lies beneath the surface. According to the reports, the company has started large-scale layoffs. More than 11,000 jobs have already been cut, and more layoffs are expected. The company has set aside over USD 250 million for severance packages for employees whose “reskilling is not possible.”

It is important to note that even amid the layoffs, Accenture has stated that it will continue hiring new employees. CEO Julie Sweet said that in FY26, the company plans to increase its total headcount across all three markets, including the US and Europe. She further added that the importance of “reinventors,” or reskilling, but also admitted that this strategy hasn’t worked effectively for some employees.

Here are some of the key details:

• Accenture has around 3.5 lakh employees in India.
• TCS has also recently laid off 12,000 employees, stating that it was not possible to “redeploy” some of them.
• Analysts say that older platforms like SAP ECC, mainframes, and non-cloud skills have become obsolete.
• Accenture’s FY26 growth guidance has also been weak.
• Investors are disappointed, and the stock has fallen by up to 3 percent. Despite this, the company is investing $3 billion in GenAI.
• Accenture recorded revenue of $17.60 billion in the June–August 2025 quarter, marking a 7 percent growth.
• The company’s financial year runs from September to August. This revenue includes a 2.5 percent foreign exchange impact.

Julie Sweet said, “Our 7% growth reflects our unique capabilities. Clients want our help in working differently with AI and building a digital core.” Accenture’s strategy is not only focused on cost-saving but also on meeting future client needs through AI-driven technologies.