Industry News | 8/1/2025

TCS Faces Backlash Over Alleged Forced Layoffs: What’s Really Going On?

TCS's recent decision to cut over 12,000 jobs has sparked a legal battle and raised serious questions about labor practices in India's tech sector. Employee unions are stepping in, claiming that the layoffs are disguised forced resignations, and the situation is heating up.

TCS Faces Backlash Over Alleged Forced Layoffs: What’s Really Going On?

So, picture this: you’re sitting at your desk, sipping your morning chai, and suddenly you hear whispers around the office. People are talking about layoffs at TCS, one of the biggest IT companies in India. It’s like a scene from a movie, right? But this isn’t fiction; it’s reality, and it’s getting pretty intense.

Recently, TCS announced it’s gonna cut about 12,000 jobs, which is roughly 2% of its global workforce. That’s a huge number, and it’s mostly hitting mid and senior-level employees. The news hit like a ton of bricks, sending shockwaves through the industry. Imagine being one of those employees, sitting there wondering if you’re next on the chopping block.

But wait, there’s more. The Karnataka Labour Department has stepped in, summoning TCS for a conciliation meeting on August 6. Why? Because the Karnataka State IT/ITeS Employees Union (KITU) filed a complaint, claiming that TCS is forcing employees to resign under pressure. They’re saying this is a direct violation of the Industrial Disputes Act.

Now, let’s break this down. KITU and other unions like NITES are accusing TCS of using sneaky tactics to push employees out the door. They argue that any company with more than 100 employees needs government approval before laying off workers. But TCS? They’re allegedly skipping that step. It’s like trying to sneak out of a party without saying goodbye—totally not cool.

Employees have been coming forward with stories that sound straight out of a horror film. Some claim they were coerced into resigning, especially those who were on the “bench”—that’s the term for employees who are between projects but still on the payroll. Imagine being told, “Hey, if you don’t quit, we might just terminate you without any paperwork.” That’s gotta be terrifying, right?

And it doesn’t stop there. Reports say that TCS has a new internal policy that limits how long employees can be on the bench to just 35 days a year. So, if you’re not assigned to a project, you’re basically racing against the clock to find one or risk losing your job. It’s like being in a game show where the stakes are your livelihood.

In response to all this chaos, unions are rallying together to support the affected workers. KITU, NITES, and the Forum for IT Employees (FITE) have set up help desks, advising employees not to resign under pressure. They’re like the Avengers of the IT world, stepping in to protect the rights of the workers. KITU has even lodged an industrial dispute case with the Karnataka Labour Department. Talk about taking action!

NITES isn’t sitting back either. They’ve escalated the situation to the national level, filing a complaint with the Union Ministry of Labour and Employment. They’re calling out TCS for what they describe as a “systemic pattern of forced exits.” This is their third complaint against TCS in a short span of time, and they’re not backing down.

Now, TCS has responded to the backlash, framing the layoffs as a strategic move to become a “Future-Ready organization.” Their CEO, K Krithivasan, insists that this isn’t just about cutting costs; it’s about aligning the workforce with future needs. He’s acknowledged that it’s a tough decision but necessary for the company’s growth.

But here’s the kicker: while TCS claims they’ll support departing employees with severance packages and extended benefits, unions argue that these perks don’t make up for the alleged illegalities in the process. It’s like giving someone a cookie after you’ve just taken their lunch money—not exactly a fair trade, right?

This whole situation is a big deal, not just for TCS but for the entire Indian tech industry. As companies grapple with economic uncertainties and the rise of AI, workforce restructuring is becoming more common. Analysts are saying that the pressure to adopt AI and streamline operations could lead to more job cuts in the future.

So, what’s next? The conciliation meeting on August 6 is gonna be crucial. It could set a precedent for how companies handle layoffs and employee rights in the tech sector. If TCS is allowed to bypass labor laws, it might open the floodgates for other companies to do the same.

In the end, it’s not just about numbers; it’s about real people with families and dreams. The outcome of this situation could have lasting implications for job security in India’s rapidly evolving economy. Let’s hope for a resolution that respects workers’ rights and keeps the tech industry thriving!