New Delhi, July 29 -- The recent report of layoffs by Tata Consultancy Services' (TCS) decision to lay off 2 per cent of its workforce, around 12,000 employees, as part of cost-cutting measures could negatively impact the company in the long run, according to a report by Jefferies.

The report noted that this move reflects the company's increasing focus on conserving margins amid persistent growth challenges. It is also third such cost-saving action taken by TCS in the past three months.

Earlier, the IT giant deferred wage hikes in April 2025 and introduced new benching guidelines in June 2025. The updated benching policy now limits the non-billable period of an employee to just 35 days in a year.

Jefferies stated, "Focus on cost-cuttin...