In a move that’s sending shockwaves across India’s IT landscape, Tata Consultancy Services (TCS) has announced it will lay off 12,000 employees, amounting to roughly 2% of its global workforce. The large-scale job cuts are reportedly aimed at mid- and senior-level professionals and are the largest ever seen in India’s IT sector, according to The Times of India.
Unions Call It Unlawful, Urge Resistance
Employee unions, including the Karnataka State IT/ITeS Employees Union and the Forum for IT Employees (FITE), have strongly opposed the layoffs. They claim the terminations are illegal and are urging employees not to resign voluntarily. FITE has advised affected staff to document all communication and approach state labour authorities for support.
“Employees should not resign under pressure. TCS must honour full severance, notice compensation, and offer continued insurance for a year,” FITE emphasized in a public statement.
TCS Promises Support and Smooth Transitions
In response to mounting criticism, TCS has pledged to support those impacted by the layoffs through a robust exit assistance program. The company outlined several measures, including:
- Compensation for the notice period
- Attractive severance packages
- Continued health insurance benefits
- Outplacement services and job counselling
TCS expressed appreciation for its outgoing employees and reassured that it remains committed to their professional wellbeing.
Not Driven by AI, But Skill Gaps: CEO Clarifies
TCS CEO K Krithivasan addressed the backlash, stating that the layoffs are not due to AI or automation but stem from skill mismatches. “TCS is restructuring for the future. Some roles are no longer relevant to our evolving business,” he explained.
Krithivasan highlighted that TCS continues to invest in upskilling and reskilling efforts and is actively hiring talent aligned with emerging technologies.
Industry Impact and the Road Ahead
The layoffs have stirred fear and discontent across the IT sector, especially as they come during a relatively stable financial period. Unions argue that the decision is profit-driven rather than a business necessity and have called for labour departments to investigate the matter.
As India’s tech industry undergoes transformation, this incident underscores the urgent need for ethical restructuring, transparent communication, and stronger employee protections.
