In a shocking move, Tata Consultancy Services (TCS) has announced plans to lay off 12,000 employees, marking one of the largest workforce reductions in India’s IT sector. The decision, which will impact 2% of TCS’s workforce, has sparked immediate backlash from employee unions, who are urging the company to reconsider.
Unions like FITE and the Karnataka State IT/ITeS Employees Union have called the layoffs unlawful and are advising affected employees not to resign under pressure. They argue that TCS, which recently reported strong financial results, is not in financial distress and has no justified reason for such drastic cuts.
TCS CEO K Krithivasan clarified that the layoffs are not linked to the company’s AI integration, which currently boosts productivity by about 20%. Instead, he cited a “skills mismatch” as the primary reason for the job cuts. Affected employees will receive notice period pay, severance packages, and extended insurance benefits. The company has also promised outplacement support to help them transition to new roles.
Despite the layoffs, TCS emphasized that it will continue hiring talented professionals, signaling a shift in skills demand rather than an overall reduction in workforce growth. Meanwhile, unions are urging employees to document all interactions with the company and seek help from the State Labour Commissioner if pressured to resign.
The news has sent ripples across India’s IT industry, raising questions about job security and the future of tech employment in the country. With TCS being a bellwether for the sector, the move could set a precedent for other firms grappling with similar challenges.
As the debate heats up, all eyes are on how TCS will navigate the growing resistance from unions and employees. The company’s next steps could redefine workplace norms in India’s booming IT landscape.