Ministry of Labour and Employment has formally summoned Tata Consultancy Services (TCS) to address two pressing issues: the layoff of approximately 12,000 employees and the delayed onboarding of 600 lateral hires.
The meeting, scheduled for August 1, 2025, will be held at Shramev Jayate Bhawan in New Delhi, with senior TCS executives expected to attend and provide clarity on the company’s recent workforce decisions.
This intervention follows multiple complaints filed by the Nascent Information Technology Employees Senate (NITES), a union representing IT professionals.
NITES has accused TCS of violating Indian labour laws and ethical norms, particularly in the manner and timing of the layoffs.
Layoffs Spark Industry-Wide Debate
TCS, India’s largest IT services firm, confirmed plans to reduce its global workforce by 2%, impacting 12,261 employees, primarily in mid- and senior-level roles.
The layoffs were communicated through email on a Sunday evening, catching many off guard.
The lack of prior notice or formal consultation drew sharp criticism from employee groups and labour advocates.
NITES President Harpreet Singh Saluja described the move as “inhumane, unethical, and outright illegal,” citing the lack of due process and government notification.
He cautioned that failing to address such actions could lead to harmful precedents.
This, in turn, might undermine employee rights and disrupt the stability of India’s employment ecosystem.
TCS Responds: Skill Mismatch, Not AI-Driven Cuts
In response to the backlash, TCS CEO K. Krithivasan clarified that the layoffs were not driven by AI-induced productivity gains.
The company instead explained that the decision stemmed from skill mismatches and deployment issues.
Employees who had remained unbilled for long durations especially experienced these challenges.
Krithivasan highlighted that TCS remains committed to supporting affected employees through reskilling and redeployment efforts.
He also noted that the restructuring aligns with the company’s larger goal of evolving into a “future-ready organization.”
Onboarding Delays Leave New Recruits in Limbo
Alongside the layoffs, TCS is facing scrutiny over the indefinite delay in onboarding 600 lateral hires.
After receiving offer letters from TCS, many professionals chose to resign from their earlier positions.
However, they were left in limbo, with no clear timelines or follow-up communication about when they would actually join.
NITES has strongly criticized the situation, describing it as a “criminal breach of trust.”
They have also called on the Ministry to mandate TCS to issue a clear, time-bound commitment for onboarding affected candidates.
The uncertainty has caused significant financial and professional stress for many of the affected candidates.
TCS HR reportedly advised some employees to pursue other job opportunities, pointing to internal restructuring as the reason.
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