TCS layoffs news: IT services firm, Tata Consultancy Services (TCS), is facing strong opposition from employee unions after it announced plans to lay off more than 12,000 employees—approximately 2% of its global workforce. The move has triggered concern across the IT sector, with calls for its withdrawal.
The layoffs are expected to impact mid and senior-level employees. Reacting sharply, the Karnataka State IT/ITeS Employees Union has urged TCS to roll back the decision and reinstate affected workers.
‘Unlawful and profit-driven,’ says union
According to a report by The Economic Times, IT employee unions have termed the layoffs “unlawful” and advised staff not to succumb to pressure to resign. The Forum for IT Employees (FITE) has cautioned against direct pressure on employees to exit and urged TCS to provide all due benefits, including notice period payouts, severance packages, and one-year insurance coverage.
FITE also alleged that TCS is financially stable and described the layoff decision as “purely profit-oriented.” It has advised employees to document all interactions, avoid voluntary resignations, and reach out to either the State Labour Commissioner or FITE if coerced to leave.
TCS defends move, says not AI-related
In response, TCS issued a statement expressing appreciation for its employees and assured support for those affected. “We will also be releasing associates from the organisation whose deployment may not be feasible,” the company said. It added that departing staff would receive notice period compensation, severance benefits, job placement support, counselling, and transition assistance.
TCS CEO K Krithivasan clarified that the layoffs are not linked to artificial intelligence (AI). In an interview with Moneycontrol, he said that the workforce reductions stem from incompatible skill sets.
As the company moves forward with its “future-ready” strategy, the pressure from unions signals growing tensions around job security in India’s IT sector—even during periods of financial stability.