TCS layoffs spark backlash from employee union and Karnataka government

The IT & ITES Democratic Employees Association (IIDEA) has strongly criticised Tata Consultancy Services (TCS) for laying off more than 12,000 employees, calling the decision abrupt and unjustified.

In a statement issued on July 30, the association claimed that the layoffs primarily affected mid- and senior-level staff, citing automation and cost-cutting as the company’s rationale.

“Around 12,261 employees, mainly at the mid and senior levels, have been shown the door. India is its largest employee base with major hubs located in Hyderabad, Bengaluru, Chennai, Pune, and Delhi-NCR,” the association said.

TCS, which had a global workforce of 6,13,069 as of June 30, added around 5,000 new employees during the April-June quarter. However, the decision to cut jobs coincides with a subdued financial quarter for India’s leading IT firms. Q1FY26 witnessed single-digit revenue growth as global tech demand remained weak due to ongoing macroeconomic uncertainties and geopolitical tensions.

In response, TCS clarified that the workforce reductions are part of a “reskilling and redeployment” initiative designed to align employees with emerging technologies such as artificial intelligence and automation.

Despite the company's explanation, IIDEA has taken a firm stance against the move. “If TCS genuinely values its workforce, it should use automation to reduce excessive work hours and reskill employees, not terminate them,” the statement said.

The union has called for an immediate halt to the layoffs and urged the company not to coerce employees into resignation. It also demanded that those affected be given full compensation and better work-life balance policies instead of job cuts.

Adding to the concerns, IIDEA alleged that over 500 experienced professionals who were selected for onboarding are still awaiting their joining dates. “Some of them who were expected to join in July this year have reportedly not received any communication from TCS. This causes financial and professional uncertainty,” the statement noted.

The union also expressed concern over a new internal policy requiring each employee to maintain a minimum billability of 225 days annually, which it warned could increase pressure on staff.

Meanwhile, the Karnataka government has stepped in, demanding an explanation from TCS regarding the layoffs. The Karnataka State IT/ITeS Employees Union (KITU) has also filed a formal complaint with the additional labour commissioner, urging intervention in the matter.