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News18
6 hours ago
- Business
- News18
TCS Layoffs: Labour Ministry Summons IT Firm Over Mass Job Cuts, Hiring Delays
Last Updated: The labour ministry has summoned TCS over two major issues -- the recent layoffs of 2% workforce or 12,000 employees, and the pending hiring of 600 professionals, says a report. TCS Layoffs. TCS Layoffs 2025: The Labour Ministry has summoned Tata Consultancy Services (TCS) on Friday, August 1, over the company's recent layoffs and delays in onboarding new hires, CNBC Awaaz has reported. The move follows a complaint filed by the Nascent Information Technology Employees Senate (NITES) with the office of the Chief Labour Commissioner (CLC). 'The labour ministry has summoned TCS over two major issues — the recent layoffs of 2% workforce or 12,000 employees, and the pending onboarding of 600 professionals. The ministry has summoned the company after the IT workers' union NITES had filed a complaint in the chief labour commissioner's office," CNBC Awaaz has reported. Taking cognisance of the NITES' complaint, the chief labour commissioner has summoned TCS on August 1, Friday, to get the detailed status of these two issues, according to the report. The Nascent Information Technology Employees Senate (NITES) on Monday, July 28, slammed the layoffs at TCS, calling it 'inhumane", 'unethical" and 'outright illegal". 'Most of those affected are mid and senior-level professionals who have served the company loyally for 10 to 20 years. The email was callously sent on a Sunday evening, without prior notice or any formal communication process in place. This mass layoff is not only unethical and inhumane; it is outright illegal. TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws," Harpreet Singh Saluja, president of NITES, said in the complaint. 'The IT sector in India employs lakhs of professionals and has been a pillar of our economy. If a company of TCS's scale is allowed to carry out mass layoffs without following due process and without consequences, it will set a dangerous precedent for other companies. It will normalise job insecurity, erode employee rights, and severely damage trust in India's employment ecosystem," he added. On Sunday, July 27, TCS management reportedly circulated an internal email confirming the layoff of nearly 12,000 permanent employees. The majority of those impacted are said to be mid- and senior-level professionals. On Monday, the NITES appealed to Labour Minister Mansukh Mandaviya to intervene, demanding an immediate halt to all terminations and the reinstatement of affected employees. TCS Layoffs TCS, India's largest IT services company, is set to lay off about 2 per cent, or 12,261 employees, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades. As of June 30, 2025, the TCS workforce stood at 6,13,069. It increased its workforce by 5,000 in the recently concluded June quarter. The move is part of the company's broader strategy to become a 'future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement. '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," it said. TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, it added The move comes at a time when India's top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! view comments Location : New Delhi, India, India First Published: July 30, 2025, 14:31 IST News business » economy TCS Layoffs: Labour Ministry Summons IT Firm Over Mass Job Cuts, Hiring Delays Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
12 hours ago
- Business
- India.com
TCS layoffs MASSIVE Update: IT union writes to Modi government, calls tech firm's move…, Meity issues statement, says...
Image for representational purpose New Delhi: In a major development, the Ministry of Information Technology (Meity) has said that the government is monitoring developments following TCS's announcement to reduce its workforce by over 12,000 staff, according to news agency PTI quoting sources. The report further adds that the ministry is seeking to understand the root causes behind this development and closely following the situation. The ministry is also maintaining communication with the technology company. TCS, India's leading IT services firm, is set to cut 12,261 jobs this year. This is equivalent to two percent of its global workforce, with the bulk of the reductions affecting middle and senior management roles. It is important to note that as of 30 June 2025, TCS employed 6,13,069 people, having added 5,000 new staff during the April-June quarter. 'TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model,' it said as quoted by PTI. On Sunday, the Indian technology giant said that this restructuring aligns with their strategy to become a 'future-ready organisation', emphasising technological investments, AI implementation, market growth, and workforce reorganisation. TCS Issues Statement: '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 statement further read. NITES Approaches Modi Government: In another development, the Nascent Information Technology Employees Senate (NITES) has approached Union Minister for Labour and Employment Mansukh Mandaviya and urged the government to issue a notice to TCS seeking an explanation for the company's recent decision. The IT employees' union has described TCS' latest move as unethical, inhumane, and outright illegal. 'The law clearly states that no employee who has served for over a year can be retrenched unless the company provides one month's notice or wages in lieu, pays statutory retrenchment compensation, and notifies the govt. TCS has not complied with any of these legal requirements,' NITES alleged, terming the action a blatant and wilful violation of the law. Here's What NITES Highlighted: NITES highlighted the devastating impact of the layoffs NITES stated that thousands of working professionals with families, EMIs, and financial commitments would suddenly lose their livelihood. The union further contended that TCS' actions cannot be justified as restructuring. NITES also emphasised that TCS's proposed move 'will normalise job insecurity, erode employee rights, and severely damage trust in India's employment ecosystem.' NITES has called for the framing of stricter safeguards for the IT sector, arguing that the industry currently suffers from a lack of enforceable employment protections. 'The psychological, emotional, and financial trauma of this move is unimaginable,' Harpreet Singh Saluja, President of NITES, wrote in the letter. 'If this injustice is not addressed immediately, NITES, along with allied IT employee unions across India, will be forced to organise nationwide protests, legal campaigns, and public demonstrations to ensure that the voices of thousands of affected employees are heard,' the union stated.
United News of India
a day ago
- Business
- United News of India
NITES accuses TCS of illegal layoffs
Bengaluru, July 28 (UNI) The Nascent Information Technology Employees Senate (NITES), a national body advocating for IT and related sector employees, has submitted a detailed complaint to Union Labour and Employment Minister Mansukh Mandaviya, alleging that Tata Consultancy Services (TCS) has carried out illegal terminations of nearly 12,000 permanent employees. The complaint, dated July 28, follows two previous submissions from NITES earlier this month and accuses the IT major of violating labour laws under the pretext of restructuring and artificial intelligence adoption. According to NITES, a company-wide internal email was circulated by TCS management yesterday, informing staff about mass layoffs. The organisation stated that most of the affected employees are mid- to senior-level professionals with 10 to 20 years of service. NITES termed the move 'inhumane' and 'blatantly illegal,' saying the layoffs were executed without any prior notice, formal communication, or adherence to mandatory legal procedures, including notice to the government. NITES President and Bombay High Court advocate Harpreet Singh Saluja said the layoffs would have a devastating impact on thousands of families, especially those of employees above 40 years of age who may find it difficult to secure alternate employment. He said this was not restructuring but a mass sacking disguised in corporate language. He further warned that such actions by a major IT firm like TCS could set a dangerous precedent for the entire sector, eroding job security and damaging trust in India's employment ecosystem. The union also expressed concern over TCS' recent delay in onboarding more than 600 lateral hires who had already resigned from previous roles, and the company's alleged misuse of its bench policy to pressure employees into voluntary resignations. NITES asserted that Indian law clearly requires companies to issue at least one month's notice, offer compensation, and inform the government prior to retrenchment of employees who have served for more than a year. TCS, according to the union, has not complied with any of these legal requirements. The union called on the Ministry of Labour and Employment to take immediate action, including issuing a notice to TCS, halting the terminations, initiating a government inquiry, and strengthening legal safeguards for IT sector employees. NITES also demanded accountability from TCS' top leadership, pointing to rising CEO compensation in contrast with the thousands now losing their livelihoods. NITES warned that if the government fails to act, the organization, along with allied IT unions, will be forced to launch nationwide protests, legal campaigns, and public demonstrations to defend the rights of affected employees. Calling the situation urgent and unjust, Saluja said, 'These are not just numbers. These are lives. These are families. And this exploitation cannot be allowed to continue under the guise of innovation or restructuring.' TCS has not yet responded to the allegations. UNI BDN SSP
The Hindu
2 days ago
- Business
- The Hindu
Layoff announcement: Allegations of forced resignations put TCS in the eye of the storm
After Tata Consultancy Services (TCS) issued an internal circulation announcing plans to cut around 12,000 of its global workforce, employees of the IT major have expressed rage and anguish over the move. The announcement comes close on the heels of a controversial 'bench policy' announced by the company in June, which could translate to job loss for employees on the bench. The move has drawn strong reactions from several IT and ITeS unions. Multiple blows in a month Harpreet Singh Saluja, president at Nascent Information Technology Employees Senate (NITES), informed that the union has filed a formal complaint with the Ministry of Labour and Employment against the company and termed the layoff 'illegal.' 'TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws,' read the letter addressing Mansukh Mandaviya, Minister for Labour and Employment, Government of India. This is the third submission by the union against the company in one month, the first being against the 'bench policy' and the second highlighting an indefinite delay from the company in onboarding more than 600 lateral hires. Allegations of forced resignations Allegations have also surfaced that TCS has been forcing mid-management employees on the bench to resign and threatening them with drastic measures such as blacklisting and holding back payments if they refused. 'Employees on the bench' refers to staff who are not assigned to a client project for the time being, but would remain on the company's payroll. The newly implemented guidelines of TCS restrict the bench duration to 35 days a year. Employees and unions allege that this puts the onus on the workers to find projects. A mid-level employee at the company who wished to remain anonymous alleged that several hundred employees, primarily those on the bench, have been forced to resign from the Bengaluru office of the company in the last two weeks. 'People are promised a few months' pay if they are willing to resign. If they refuse, they are threatened with termination without any compensation. People are being scared into resignation by saying that the company will blacklist them and will not provide them with a relieving letter,' the employee said Employees anxious According to the employee, the company has also started instructing managers to furnish information about a fixed number of 'non-critical' staff from each project. 'So far, the impression was that only those on the bench were in danger. With yesterday's circular, those working on projects have also become anxious,' said the employee. Mr. Saluja noted that affected employees from the company's offices in Bengaluru, Kolkata, and Hyderabad have also approached the union. 'If the company terminates them on the basis of the bench policy, it can be challenged in court. But if it is shown that the employees resigned on their own accord, there are no chances for people to fight back,' he said. Saubhik Bhattacharya of All India IT & ITeS Employees' Union (AIITEU) alleged that forcing employees to resign would also help the company save severance packages. Helpdesk set up With concerns about massive retrenchments, unions including The Karnataka State IT/ITeS Employees Union (KITU), AIITEU and NITES have setup helpdesk numbers for employees under duress. 'As per the Industrial Disputes Act, it is a punishable offence for an employer to compel an employee to resign. Every employee has the legal right to refuse to sign a forced resignation,' said KITU which demanded immediate government intervention. 'As per labour laws, any company employing more than 100 workers must obtain prior permission from the government before carrying out any retrenchment,' said the Union. TCS has not responded to The Hindu's request for a comment.
Time of India
2 days ago
- Business
- Time of India
TCS layoffs: MeitY takes note; staff union writes to labour minister
TCS layoffs: MeitY takes note; staff union writes to labour minister Also in the letter: TCS layoffs draw government attention Context: Why it matters: What's next: TCS faces union heat over 12,000 job cuts What they said: Also Read: Backdrop: Why it matters: With automation and realignment reshaping roles, concerns around job security and fair practice are bubbling to the surface, while also forcing the government to take a closer look at how India's tech sector handles disruption. TCS job cuts may set precedent for India's IT sector The signal: AI not the culprit (yet) No status quo: Samsung exports slump 20% as PLI benefits lapse Why it matters: Also Read: The bigger picture: The company is seeking credit for FY22, which it claims was impacted by Covid-19. What to watch: Also Read: Google deposes before ED in online betting probe The case: Google may have to submit internal records and compliance statements as part of the investigation. Google's response: Why it matters: What's next: The union government is taking an interest in the TCS layoffs that spooked employees and investors. This and more in today's ETtech Top 5.■ Broader IT shakeup■ Samsung in slow lane■ ED grills GoogleTCS CEO K KrithivasanIndia's IT Ministry is closely monitoring Tata Consultancy Services' (TCS) decision to cut 12,261 jobs – roughly 2% of its global workforce – as alarm grows over job losses at India's largest tech firm. Government officials are in touch with TCS, seeking clarity on the rationale behind the said the layoffs are part of its drive to become a 'future-ready organisation', involving the adoption of artificial intelligence, global expansion, and a reorganisation of its workforce. Most of the cuts target mid- and senior-level creation remains a key political priority, and the government is weighing whether schemes like the Employment Linked Incentive can soften the blow. The episode also highlights the growing urgency for IT firms to reskill at ministry may push for more aggressive skilling interventions and wants clearer insight into existing talent gaps. TCS, for its part, said it will offer severance packages, counselling support, and outplacement services to affected union Nascent IT Employees Senate (NITES) has urged labour minister Mansukh Mandaviya to halt TCS's plan to axe over 12,000 jobs , calling the move 'illegal' and demanding the reinstatement of affected its letter, NITES accused the IT giant of sidelining over 600 lateral hires and questioned the fairness of the layoffs, pointing to hefty executive pay packets. The union also called on the government to hold senior leadership had framed the cuts as being part of a broader transformation drive. CEO K Krithivasan insisted the decision wasn't AI-led, but stemmed from a skill mismatch , particularly among senior standoff reflects the growing friction between India's tech majors and their workforce, as companies chase agility and cost move to cut 12,000 jobs has rattled nerves in India's IT industry, raising concerns about a broader shakeout . No other firm has followed suit yet, but the hiring chill is hard to added just 5,000 employees in Q1 FY26, while rivals like Infosys have slowed onboarding . The company has also cracked down on idle time , capping non-billable days at 35 annually. The message is becoming clearer: Productivity is now non-negotiable.: While TCS is investing heavily in automation, its CEO insists that the layoffs stem from role overlaps and outdated skills, not machines replacing people. Still, the pace of tech disruption is others adopt TCS's strategy, job security, particularly for mid-career professionals, could be affected. Expect boardrooms to prioritise workforce agility, reskilling, and internal smartphone exports from India tumbled 20% year-on-year in Q1 FY26 to $950 million after the South Korean electronics giant stopped receiving incentives under the government's production-linked incentive (PLI) scheme, industry executives told sharp drop has sparked concern over India's cost competitiveness in electronics manufacturing. Without PLI support, India's export costs are estimated to be 10–15% higher than those of Vietnam and China. Apple, Dixon, and other firms could hit a similar wall after FY26, when their PLI cycle comes to an was one of PLI's biggest beneficiaries, scaling exports from $1.2 billion in FY21 to $4.4 billion in FY25. That momentum now risks stalling.A new Rs 22,919-crore components PLI scheme is on the table. But for anchor players like Samsung to stay committed, policy continuity may be just as important as fresh executives appeared before the Enforcement Directorate (ED) on Monday as part of a probe into alleged promotion of illegal online betting and gambling platforms. Meta officials, who were also summoned, skipped the ED is examining whether digital platforms enabled ads for unlawful betting sites, potentially violating the Prevention of Money Laundering Act (PMLA).The company said it prohibits illegal gambling ads and is cooperating fully with the authorities. 'We are committed to keeping our platforms safe and secure,' a spokesperson told the news agency Press Trust of marks one of the first PMLA-linked cases scrutinising the ad practices of Big Tech companies in India. With the upcoming Digital India Act, the government is pushing for tighter oversight and platform investigation could widen if more violations surface. Advertising rules may soon become far more stringent, particularly for sectors such as gaming, cryptocurrency, and high-risk finance, where regulatory grey areas have long been the norm.
