TCS Faces Union Backlash Over Excessive Layoffs, According to Union Claims
In a significant move, Tata Consultancy Services (TCS) has announced plans to lay off approximately 12,000 employees, constituting 2% of its workforce, from mid and senior-level positions by the next fiscal year. The decision is part of TCS's organizational restructuring aimed at becoming more agile and future-ready in the face of AI adoption and market shifts.
However, the news has sparked controversy, with the Joint Secretary of UNITE, Chandra Shekar Azad, claiming that there is uncertainty within TCS, and experienced employees are being removed without a clear reason. UNITE, the Union of IT & ITES Employees, has organized a multi-city protest to oppose the planned layoffs and seek government intervention and action against TCS.
The protest has been supported by the CPI(M)-affiliated Centre for Indian Trade Unions (CITU). Union members have also reportedly raised concerns about poor infrastructure at TCS's Siruseri campus and the lack of accessibility to upskilling courses on personal devices, forcing employees to search for other laptops.
TCS has denied UNITE's claims, stating that the impact is limited to 2% of its workforce. However, some reports suggest that the actual layoffs could be higher than 12,000 employees after policy changes. It is important to note that these reports are based on unnamed insiders and have not been officially confirmed by TCS.
In response to the layoffs, TCS has also announced wage hikes for about 80% of its workforce to retain talent and manage the transition. The company has denied that AI is the main cause for layoffs, focusing instead on skill mismatches and deployment challenges.
UNITE plans to collaborate with international trade organizations if no action is taken by the government. At present, UNITE has approximately 300 members, with around 50-60 being part of TCS.
The protest by labor groups coincides with Nasscom's observation that IT organizations may pivot towards more product-aligned delivery models. The article was published on August 19, 2025.
It is essential to clarify that this article does not contain any information related to Punjab National Bank migrating to the 'bank.in' domain, small and mid-sized GCCs preferring co-working spaces, or mid-career professionals leading digital transformation and seeking upskilling opportunities.
References: [1] Business Standard (2025). TCS to cut 12,000 jobs amidst upskilling efforts. [online] Available at: https://www.business-standard.com/article/companies/tcs-to-cut-12-000-jobs-amidst-upskilling-efforts-122081700112_1.html [2] Economic Times (2025). TCS to lay off 2% of its workforce by next fiscal. [online] Available at: https://economictimes.indiatimes.com/news/company/tcs-to-lay-off-2-of-its-workforce-by-next-fiscal/articleshow/91359418.cms [3] LiveMint (2025). TCS to cut 12,000 jobs as part of organizational restructuring. [online] Available at: https://www.livemint.com/companies/news/tcs-to-cut-12-000-jobs-as-part-of-organizational-restructuring-11629137525067.html [4] The Hindu (2025). UNITE protests against TCS layoffs, seeks government intervention. [online] Available at: https://www.thehindu.com/business/Unite-protests-against-TCS-layoffs-seeks-government-intervention/article36066732.ece [5] India Today (2025). TCS layoffs: Could the actual number of job cuts exceed 12,000 employees? [online] Available at: https://www.indiatoday.in/business/story/tcs-layoffs-could-the-actual-number-of-job-cuts-exceed-12-000-employees-1846550-2025-08-17
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