Tata Consultancy Services (TCS), India’s largest IT services firm, is facing mounting criticism from employee unions and advocacy groups following its announcement to lay off 12,000 employees—approximately 2% of its global workforce—in FY26.
The move has been labeled the largest mass layoff in Indian IT history, sparking widespread concern across the sector.
Mid- and senior-level professionals are expected to bear the brunt of its impact.
The layoffs have taken place during a phase of financial stability for TCS.
This has led unions to challenge both the necessity and the legal grounds of the company’s decision.
Unions Call Layoffs “Unlawful,” Urge Employees to Resist Pressure
Multiple employee advocacy groups have spoken out against the layoffs.
These include the Karnataka State IT/ITeS Employees Union, the Forum for IT Employees (FITE), and the Nascent Information Technology Employees Senate (NITES).
They argue that the terminations are driven by profit motives rather than genuine business needs.
Affected employees have been advised to document all communications, refrain from resigning voluntarily, and seek legal or union support before taking any steps.
FITE stated, “TCS should not pressure employees into resigning but must provide full severance benefits, notice period compensation, and insurance coverage for at least a year”.
NITES has escalated the issue by formally writing to Union Labour Minister Mansukh Mandaviya, urging him to intervene.
They have requested a halt to all terminations and called for a thorough investigation into the company’s practices, including the delayed onboarding of lateral hires.
TCS Responds: Layoffs Driven by Skill Mismatch, Not AI
TCS CEO K Krithivasan responded to the backlash by clarifying that the layoffs are not connected to automation or AI-driven productivity improvements.
He explained that the decision was based on skill mismatches and challenges in deploying certain roles.
“TCS is evolving into a future-ready organisation. This involves releasing employees whose current skills are no longer deployable in our business roadmap,” Krithivasan told Moneycontrol.
The company has pledged to support impacted employees through a structured exit program, which includes:
- Notice period compensation
- Severance packages
- Extended health insurance
- Outplacement assistance
- Counselling and transition support
TCS also expressed gratitude for the contributions of outgoing staff and reiterated its commitment to upskilling and reskilling efforts.
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