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TCS in spotlight over job cuts: Karnataka government seeks explanation; 12,000 layoffs raise alarm
TCS in spotlight over job cuts: Karnataka government seeks explanation; 12,000 layoffs raise alarm

Time of India

time01-08-2025

  • Business
  • Time of India

TCS in spotlight over job cuts: Karnataka government seeks explanation; 12,000 layoffs raise alarm

The Karnataka Labour Minister, Santosh Lad, announced on Thursday that his department has sought clarification from TCS amid their plans to cut 12,000 employees from their workforce. "We got information that the TCS has laid off 12,000 employees. Our department has called TCS officials just to have consultation to know the reason," the minister stated during a press briefing, as quoted by news agency PTI. TCS announced plans to reduce approximately 2 per cent, equating to 12,261 employees, from its global workforce this year, primarily affecting middle and senior positions. As of June 30, 2025, TCS employed 6,13,069 people, having added 5,000 staff in the April-June quarter. The company stated this restructuring aligns with their aim to become a "future-ready organisation", emphasising technology investments, AI implementation, market growth, and workforce adjustments. KITU strongly opposed the large-scale dismissals, submitting a formal complaint against TCS to Additional Labour Commissioner G Manjunath. The union's statement demanded legal action against the management for violating the Industrial Disputes Act, 1947, and Karnataka Government's requirements regarding service reporting. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like What Happens When You Massage Baking Soda Into Your Scalp Read More Undo The state minister indicated that discussions with TCS and other companies also addressed the rejection of requests to extend daily working hours to nine or ten hours. He clarified that permission for extended hours would depend on employee consent, stating, "This is subject to the employees' wishes. Those employees who reject the permission will not be forced to do it." The Minister expressed concerns about implementing longer working hours, noting the significant time spent commuting in Bengaluru. Considering Bengaluru's traffic conditions, employees typically spend three to four hours daily travelling, in addition to eight working hours. "As Minister also when I see this proposal of increasing the working hours, I feel that it is not scientific. Increasing working hours can happen for a week or 10 days but not throughout the year in view of Bengaluru traffic," Lad elaborated, quoted by PTI. He acknowledged the industry representatives' position that extended hours could benefit both employees and businesses. However, he emphasised that extended hours would require written employee consent and could not be universally implemented. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025

IT Union Files Dispute Against TCS Over Layoffs, Karnataka May Also Intervene
IT Union Files Dispute Against TCS Over Layoffs, Karnataka May Also Intervene

NDTV

time30-07-2025

  • Business
  • NDTV

IT Union Files Dispute Against TCS Over Layoffs, Karnataka May Also Intervene

Bengaluru: The Karnataka State IT/ITeS Employees Union (KITU) has filed an industrial dispute against Tata Consultancy Services (TCS) over its proposed layoffs, urging the Labour Department to act against the management for alleged violations of the Industrial Disputes Act, 1947, and conditions imposed by the Government of Karnataka on reporting service particulars. Earlier this week, TCS announced that it will reduce its global workforce by 2 per cent in its 2026 financial year, which would lead to about 12,000 people losing their jobs. KITU representatives met Additional Labour Commissioner G Manjunath on Wednesday and submitted a complaint citing multiple employee grievances. Under the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior government approval before carrying out any layoffs or retrenchments. Such actions are permitted only for specific reasons and under conditions clearly defined in the Act. KITU claimed that the TCS management had violated these provisions. The Union demanded criminal proceedings against officials involved in the violations and immediate action from the Labour Department to ensure justice for the affected employees. Meanwhile, sources in the Labour Department confirmed that a meeting with TCS management is being planned to discuss the proposed layoffs. Though the date is yet to be finalised, the state Labour Minister has directed that the meeting be held as soon as possible. KITU stressed the urgency of the situation and called for strict enforcement of labour laws in the IT sector, warning that failure to act could set a dangerous precedent for employees' rights in the state. TCS has said the layoffs are part of its strategy to become a "future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment. "Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," the company said in a statement.

Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts
Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts

Economic Times

time30-07-2025

  • Business
  • Economic Times

Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts

The Karnataka State IT/ITeS Employees Union (KITU) on Wednesday filed an industrial dispute case against Tata Consultancy Services before the state's labour department, accusing the IT market leader of illegal mass retrenchment and seeking prosecution of the management for violation of the Industrial Disputes Act. Mumbai-based TCS last Sunday announced that it would cut 2% of the workforce this fiscal year, affecting more than 12,000 of its mid- and senior-level employees. The job cuts come at a time when macro uncertainties and artificial intelligence-led technology disruptions are affecting demand for IT services. KITU representatives met Karnataka additional labour commissioner G Manjunath demanding initiation of criminal proceedings against the executive involved in 'the criminal act of forcing employees to resign', the union said in a news release. The union said it has received several complaints from TCS employees stating that the management was forcing them to is already facing scrutiny from the central government, including the ministries of electronics and information technology and labour, after another technology employees' association, Nascent Information Technology Employees Senate (NITES), sent out two letters seeking the labour ministry's intervention in this matter. Also Read: TCS to lay off 12,000 employees: What we know so far about the mass cull The chief labour commissioner's office has sought to meet senior TCS executives on August 1. The labour ministry aims to address concerns over large-scale layoffs and delays in onboarding new recruits.'According to the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior approval from the government before carrying out any layoffs or retrenchments. Such retrenchments are permitted only for specific reasons and under conditions clearly defined in the Act,' KITU's release said. 'This well-established and consistently upheld labour jurisprudence has been violated by the TCS management, which has resorted to the criminal practice of forcing employees to resign.'In view of the urgency of the situation, the union has urged the additional labour commissioner to take necessary actions to ensure justice for the affected employees, it said. TCS CEO K Krithivasan has said that the decision to lay off employees was not driven by AI-induced productivity gains, but rather due to skill mismatches or deployment issues. The $30 billion revenue-sized IT bellwether has also decided to freeze all lateral hirings of experienced personnel for now and paused its annual salary hikes globally, ET reported on Tuesday.

Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts
Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts

Time of India

time30-07-2025

  • Business
  • Time of India

Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts

The Karnataka State IT/ITeS Employees Union (KITU) on Wednesday filed an industrial dispute case against Tata Consultancy Services before the state's labour department, accusing the IT market leader of illegal mass retrenchment and seeking prosecution of the management for violation of the Industrial Disputes TCS last Sunday announced that it would cut 2% of the workforce this fiscal year, affecting more than 12,000 of its mid- and senior-level employees. The job cuts come at a time when macro uncertainties and artificial intelligence-led technology disruptions are affecting demand for IT representatives met Karnataka additional labour commissioner G Manjunath demanding initiation of criminal proceedings against the executive involved in 'the criminal act of forcing employees to resign', the union said in a news union said it has received several complaints from TCS employees stating that the management was forcing them to is already facing scrutiny from the central government, including the ministries of electronics and information technology and labour, after another technology employees' association, Nascent Information Technology Employees Senate (NITES), sent out two letters seeking the labour ministry's intervention in this chief labour commissioner's office has sought to meet senior TCS executives on August 1. The labour ministry aims to address concerns over large-scale layoffs and delays in onboarding new recruits.'According to the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior approval from the government before carrying out any layoffs or retrenchments. Such retrenchments are permitted only for specific reasons and under conditions clearly defined in the Act,' KITU's release said. 'This well-established and consistently upheld labour jurisprudence has been violated by the TCS management, which has resorted to the criminal practice of forcing employees to resign.'In view of the urgency of the situation, the union has urged the additional labour commissioner to take necessary actions to ensure justice for the affected employees, it CEO K Krithivasan has said that the decision to lay off employees was not driven by AI-induced productivity gains, but rather due to skill mismatches or deployment $30 billion revenue-sized IT bellwether has also decided to freeze all lateral hirings of experienced personnel for now and paused its annual salary hikes globally, ET reported on Tuesday.

Karnataka drops move to extend IT work hours
Karnataka drops move to extend IT work hours

New Indian Express

time30-07-2025

  • Business
  • New Indian Express

Karnataka drops move to extend IT work hours

BENGALURU: The Karnataka State IT/ITeS Employees Union (KITU) on Tuesday stated that in a victory for IT sector employees, the state government has withdrawn its proposal to extend working hours in the IT/ITeS industry, following intense opposition by the union. The proposed Karnataka Shops and Commercial Establishments (Amendment) Bill, 2025, aimed at increasing working hours under the 1961 Act, was contested by KITU during a stakeholder meeting on June 18. The union had termed the move a violation of workers' right to personal time and warned it would not allow such changes under any circumstances. Over the past six weeks, KITU organised widespread protests in IT parks, on public roads, and outside company offices across Bengaluru. The sustained campaign pressured the government to back down. Additional Labour Commissioner G Manjunath conveyed the withdrawal of the proposal to KITU office bearers in a meeting on Tuesday. 'This is a historic moment. It proves that when workers unite, even powerful attempts to dilute labour protections can be defeated,' the union said in a statement.

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