Tuesday, September 30, 2025
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TCS Layoffs Spark Anxiety as Employees Question Transparency

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Employees at Tata Consultancy Services (TCS), India’s largest IT services firm, are grappling with rising uncertainty following a wave of layoffs and internal restructuring.

While the company officially stated that only 2% of its workforce—approximately 12,000 employees—would be impacted, multiple reports and union claims suggest the actual number could be significantly higher, possibly exceeding 30,000.

The layoffs, which began earlier this year, have intensified in recent weeks, with many employees alleging forced resignations, abrupt terminations, and pressure from internal departments.

The situation has created an atmosphere of fear and confusion, particularly among mid- and senior-level staff.

TCS Forced Resignations and the “Fluidity List”

One of the most troubling aspects of the current situation is the emergence of what employees refer to as a “fluidity list”—a confidential internal document reportedly used to identify staff for potential exit.

Several employees claim they were placed on this list without clear justification, regardless of their performance or tenure.

Rohan (name changed), a 35-year-old employee who had been with TCS for 13 years, recounted his experience of being pressured to resign after spending months on the bench.

Despite his attempts to find new projects within the company, he was eventually terminated and asked to pay a recovery fee of ₹6–8 lakh for the bench period.

Half of this amount was deducted from his gratuity and leave balance, while the rest was settled by the company.

Rohan described the ordeal as mentally exhausting, citing repeated calls from HR and the Resource Management Group (RMG), threats of moonlighting accusations, and revoked system access.

He is currently unemployed and hiding his situation from his family.

Disputed Numbers and Union Protests

TCS maintains that the layoffs are limited and part of routine workforce optimization.

However, several IT employee unions—including AIITEU, FITE, UNITE, and KITU—have disputed this claim.

These groups argue that the scale of layoffs is far greater than officially reported.

Many employees are being asked to resign instead of being formally terminated, which keeps the numbers off official records.

Union representatives say they have received direct appeals from over 10,000 affected employees since June.

They also allege that the layoffs are arbitrary and not based on performance or skill. Some employees were given just a week’s notice or asked to leave immediately.

Impact on Morale and Trust of TCS Employees

The uncertainty has deeply affected employee morale, especially among those who have served the company for over a decade.

Many fear receiving emails from HR, unsure whether they signal routine communication or impending termination.

Younger employees, too, are anxious about their future, as even senior colleagues are being let go without clear rationale.

The situation has raised questions about transparency, fairness, and the long-term implications for TCS’s employer brand.

The company continues to secure new deals and expand its global footprint. However, internal turbulence may affect its ability to retain and motivate talent.

Company Response

In response to media queries, TCS has reiterated that the layoffs are limited to 2% of its workforce and that speculations about higher numbers are “incorrect and misleading.”

A company spokesperson emphasized that TCS is experiencing ongoing business growth.

They added that the company would not be able to function effectively if large-scale exits were actually taking place.

The criteria for layoffs remain unclear, leaving employees uncertain about their standing.

The use of forced resignations has further raised concerns among both staff and industry observers.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus