India’s largest IT employer faces unprecedented employee unrest as UNITE stages protests across multiple cities against TCS, alleging nearly 30,000 employees could lose their jobs. This massive disagreement between union claims and official company statements has created a crisis of confidence in the IT sector.
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The Numbers Game: 12,000 vs 30,000 Jobs
TCS officially confirmed plans to cut 2% of its global workforce – about 12,000 jobs – by March 2026, marking the company’s largest workforce reduction in its 50-year history. However, union UNITE alleges the actual figure could reach 30,000 employees, creating significant discrepancy in reported layoff numbers.
TCS Layoff Breakdown by Category
| Affected Group | Official TCS Numbers | Union Claims | Timeline |
|---|---|---|---|
| Total Layoffs | 12,000 (2% workforce) | 30,000+ employees | FY 2025-26 |
| Primary Target | Mid & Senior Level | All levels affected | Ongoing |
| Onboarding Delays | 600 lateral hires | Additional concerns | Immediate |
| Bench Staff | Hundreds trimmed | Massive reductions | Current |
Source: TCS CEO K Krithivasan official statements
Union’s Fierce Response and Nationwide Protests
The Union of IT & ITES Employees (UNITE), backed by the Centre of Indian Trade Unions (CITU), has demanded government intervention and staged demonstrations across major Indian cities including Chennai, Hyderabad, Pune, and Kolkata.
Key Union Allegations
- Legal Violations: Companies employing more than 100 workers must obtain prior government approval before layoffs under the Industrial Disputes Act, 1947
- Forced Resignations: Employees report unfair bench policies and pressure tactics
- Lack of Transparency: Union leaders cite “lack of transparency regarding planned layoffs”
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TCS’s Official Position: “Misleading Claims”
TCS strongly denied union claims, calling them “incorrect and misleading,” insisting job reductions would be restricted to about 2% of its global workforce. The company maintains this restructuring exercise aims to make operations more agile and future-ready.
Company’s Justification
- Strategic Restructuring: Focus on AI-driven organizational transformation
- Skill Realignment: Emphasis on becoming a ‘future-ready’ organization
- Operational Efficiency: Making the company “more agile”
Government Intervention and Labour Ministry Action
The Labour Ministry has summoned TCS over mass layoffs and delays in onboarding hired employees. This unprecedented government intervention highlights the severity of the situation.
Ministry’s Concerns
- Onboarding Delays: TCS committed to onboarding 600 lateral hires after ministry meeting
- Legal Compliance: Ensuring adherence to industrial dispute regulations
- Employee Welfare: Monitoring impact on affected workers
However, TCS skipped a key Labour Ministry meeting, prompting unions to demand accountability, further escalating tensions.
Broader IT Sector Crisis
Technology sector layoffs within India have exceeded 100,000 in 2025, surpassing 2024’s entire total by mid-July. This alarming trend indicates widespread industry transformation driven by AI adoption and economic pressures.
Industry Impact Analysis
- Job Market Instability: Increasing uncertainty for IT professionals
- Skill Gap Challenges: Mismatch between current skills and future requirements
- Economic Implications: Potential impact on India’s IT services dominance
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What This Means for IT Employees
The TCS situation represents a watershed moment for India’s IT workforce. Employees are increasingly joining unions and seeking legal protection against what they perceive as unfair employment practices.
Employee Options
- Union Membership: Joining organizations like UNITE for collective bargaining
- Legal Recourse: Understanding rights under Industrial Disputes Act
- Skill Development: Preparing for industry transformation
- Alternative Employment: Exploring opportunities in emerging sectors
For detailed information on employee rights and IT industry regulations, refer to official Labour Ministry guidelines and IT sector employment policies.
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Frequently Asked Questions
Q1: Is TCS legally required to seek government approval before conducting mass layoffs?
A: Yes, under the Industrial Disputes Act, 1947, companies employing more than 100 workers must obtain prior government approval before carrying out any layoffs or retrenchments. The union argues TCS is violating this provision, which is why the Labour Ministry has summoned the company for discussions.
Q2: What’s the actual number of TCS layoffs – 12,000 or 30,000?
A: TCS officially confirms 12,000 layoffs (2% of workforce) by March 2026, while UNITE union claims the figure could reach 30,000 employees. The significant discrepancy stems from different methodologies of counting affected employees, including those on bench, facing forced resignations, or experiencing delayed onboarding. The actual impact may become clearer as the process unfolds.
