Amid India Layoffs, TCS Commits 5,000 New Jobs In UK With AI Push In London

Tata Consultancy Services (TCS), India's largest IT services firm, announced plans to create 5,000 new jobs across the United Kingdom over the next three years, alongside the opening of an Artificial Intelligence Experience Zone and Design Studio in London.

The move comes just months after TCS outlined intentions to cut approximately 12,000 positions in India, representing about 2 percent of its global workforce, as part of a restructuring effort earlier in 2025. The company's UK headcount currently stands at around 15,300 employees in technology roles, with total direct and indirect job support reaching 42,700 across 19 sites.

TCS described the London facilities as a reimagined version of its former PacePort innovation center, aimed at boosting client collaboration on AI and digital transformation projects. The studio marks the second such design hub for the company, following a similar opening in New York last month. It will draw on TCS's partnerships with UK academia, startups, and industry players to drive innovation.

TCS' UK push

The announcement coincided with a visit to TCS's Banyan Park campus in Mumbai by a UK business delegation led by Prime Minister Keir Starmer. During the event, UK Minister for Investment Jason Stockwood joined TCS executives to release the Oxford Economics report, which quantified the firm's FY2024 contributions to the UK - £3.3 billion in gross value added to the economy and over £780 million in tax revenues, equivalent to funding salaries for more than 20,400 teachers.

UK's relationship with the Tata Group

Stockwood highlighted the longstanding ties between the Tata Group and the UK, noting, “For nearly 150 years, Tata Group has reflected their leadership in entrepreneurship and philanthropy. Now, as we celebrate a landmark Prime Ministerial visit to India, we have reaffirmed the pledge between our two economies to maximise on the trade deal we signed in July.”

Industry analyst Nick Mayes of PAC described the investment as reinforcing TCS's role in UK digital services, stating it positions the firm to assist clients in leveraging AI amid complex transformation programs across sectors like financial services, manufacturing, and public services.

TCS UK and Ireland head Vinay Singhvi emphasised the region's importance, calling it the company's second-largest market globally. He added that the AI zone would aid businesses in staying competitive in emerging technologies, while expansions target innovation, skills development, and presence in all four UK nations.

The firm also detailed community efforts, including support for the TCS London Marathon, which raised a record £73.5 million for charities in 2024. TCS's "Partnering for Skills" program seeks to reskill over 12,000 individuals for STEM roles, aligning with UK government priorities to address a skills gap estimated to cost the economy £1.5 billion annually.

TCS Q2 FY26 results

In parallel financial disclosures for Q2 FY26 ended September 30, TCS reported revenue of $7.466 billion, up 0.6 percent quarter-over-quarter and 0.8 percent in constant currency. Net income rose 3 percent year-over-year to $1.464 billion, with operating margins expanding 70 basis points to 25.2 percent. Total contract value for the quarter reached $10 billion, and the board declared a dividend of Rs. 11 per share.

TCS, part of the Tata Group, employs over 593,000 people worldwide and generated more than $30 billion in revenues for the fiscal year ended March 31.