India, July 28 -- Tata Consultancy Services (TCS), India's largest IT services firm, is set to lay off about 2%, or 12,261 employees, of its global workforce this year.

In an interview with MoneyControl, TCS CEO K Krithivasan termed the decision a "hard but necessary reckoning." Krithivasan also denied that the job cuts were due to artificial intelligence (AI).

"This is not because of AI giving some 20 per cent productivity gains," Krithivasan told Moneycontrol.

"This is driven by where there is a skill mismatch, or, where we think that we have not been able to deploy someone," he added.

Krithivasan told Moneycontrol that the layoffs will be implemented gradually over FY26 and will not be tied to any particular geography or domain. "W...