Tata Consultancy Services (TCS) has announced the acquisition of US-based ListEngage for $72.8 million (approximately ₹646 crore), a strategic move aimed at strengthening its Salesforce practice and enhancing its agentic AI capabilities. The acquisition, approved by board and expected to be completed by October 10, 2025, will integrate over 100 professionals from ListEngage into TCS’s Enterprise Solutions division in the US.
About ListEngage
ListEngage, founded in 2003 and headquartered in Massachusetts, brings a strong portfolio with expertise across different Salesforce platforms, assisting over 3,000 customers worldwide in digital transformation projects involving marketing automation, campaign management, data strategy, and AI-enhanced customer engagement. The company has earned Salesforce summit partner status and boasts more than 400 certified professionals, positioning it as a leading player in AI and marketing cloud services. Its clients come from diverse industries such as financial services, retail, healthcare, technology, and education.
This acquisition will bolster TCS’s ability to provide comprehensive Salesforce-based marketing and AI-powered services globally, deepening its longstanding partnership with Salesforce.
TCS Latest Financials
In its Q2 FY26 earnings, Tata Consultancy Services reported a consolidated net profit of ₹12,075 crore, marking a 1.4% year-on-year increase from ₹11,909 crore in Q2 FY25. Operational revenues grew to ₹65,799 crore, up 2.39% YoY, driven by strength across banking, financial services, and insurance sectors. Despite a sequential decline in profit compared to Q1 FY26, the company highlighted momentum in AI-powered enterprise transformation and customer engagements focused on rapid value realization. They also introduced a second interim dividend for FY26, reflecting robust cash generation and shareholder returns.
Layoffs Rumors and Official Statement
In July 2025, Tata Consultancy Services announced plans to reduce about 12,000 employees (2% of its global workforce) mainly among middle and senior management as part of workforce realignment to focus on future-ready skills and AI-led transformation. However, recent media reports and social media claims alleging layoffs of up to 80,000 employees were refuted by the company.
They clarified that these numbers were exaggerated and misleading, confirming only about 12,000 associates have been “released” with appropriate benefits and outplacement support. The firm remains committed to reskilling, redeployment, and growth opportunism amid evolving client demands and global market conditions.
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Summary:
TCS’s $72.8 million acquisition of ListEngage strengthens its Salesforce and AI advisory portfolio by adding specialized marketing cloud capabilities and experienced professionals. Alongside solid Q2 financial performance, the deal highlights Tata Consultancy Services’ strategic focus on high-growth areas like AI and cloud services. While workforce realignment continues, official statements assure measured, disciplined headcount adjustments aimed at building future-ready teams amidst technological transformation.
