London, October 14: Indian IT giant Tata Consultancy Services (TCS) has announced plans to create 5,000 new jobs in the United Kingdom over the next three years, as part of its ongoing investment in technology, innovation, and digital skills development.
The company has also unveiled a new Artificial Intelligence Experience Zone and Design Studio in London, designed to help clients develop and test advanced AI-driven solutions. TCS stated that the new centre will foster collaboration among clients, researchers, and startups, further strengthening the UK’s position as a hub for technological innovation.
According to TCS, this initiative is part of its long-term strategy to invest in digital transformation and STEM education. The company is partnering with universities and government-led programs that promote science, technology, engineering, and mathematics to enhance skill development and research capabilities.
A recent report by Oxford Economics, released during a visit by a UK trade delegation to TCS’s Mumbai campus, highlighted that TCS contributed £3 billion to the UK economy in the 2024 fiscal year. The company paid more than £180 million in taxes and supported approximately 42,700 jobs directly and indirectly across 19 sites, said Vinay Singhvi, Head of TCS UK and Ireland.
“The UK remains our second-largest market and a central pillar of our global growth strategy,” Singhvi noted.
UK Investment Minister Jason Stockwood, part of Prime Minister Keir Starmer’s delegation, commended Tata Group’s continued investment in the country, saying the company plays a vital role in “driving trade and creating high-quality employment opportunities across both nations.”
TCS reaffirmed its commitment to expanding its UK presence through ongoing investments in innovation, skills, and community engagement—including its long-standing partnership with the TCS London Marathon, which raised £73.5 million for charity in 2024.
The announcement comes amid reports of higher employee attrition and operational challenges faced by the company globally. During the July–September quarter, voluntary attrition rose from 12.3% to 13.3%, with total headcount falling from 613,069 to 593,314, a reduction of nearly 20,000 employees.
As part of internal restructuring, TCS confirmed the layoff of around 6,000 mid- and senior-level employees, accounting for roughly 1% of its workforce. However, Chief Human Resources Officer Sudeep Kunnummal clarified that reports of large-scale layoffs were “exaggerated,” emphasizing that most personnel changes were part of a planned workforce realignment.
Kunnummal further stated that TCS’s business model is adapting to reduced dependency on the U.S. H-1B visa program through increased localization of its workforce. “We have significantly lowered our reliance on H-1B visas for U.S. operations. Last year, we issued only about 500 new H-1B visas to associates,” he said.
With its new AI centre in London and expanded UK investment, TCS aims to position itself at the forefront of global digital transformation—strengthening both its European presence and its long-standing commitment to innovation-led growth.
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