TCS Layoffs: IT Ministry Closely Monitoring Tata Consultancy Services' Workforce Changes

The IT Ministry is closely monitoring Tata Consultancy Services' (TCS) decision to lay off over 12,000 employees. This move is part of TCS's strategy to become a future-ready organisation by investing in technology, AI, market expansion, and workforce realignment. The layoffs will primarily affect middle and senior-level employees. The ministry is concerned about the reasons behind this decision and is in contact with TCS.

The Nascent Information Technology Employees Senate (NITES) has approached Union Minister for Labour and Employment Mansukh Mandaviya, urging the government to demand an explanation from TCS. NITES has criticised the layoffs as unethical and illegal, stating that TCS has not adhered to legal requirements such as providing notice or compensation. The union argues that this action could set a dangerous precedent for other companies.

Impact on Employees and Industry

NITES emphasised the devastating impact of the layoffs on employees, many of whom have families and financial commitments. Harpreet Singh Saluja, President of NITES, highlighted the psychological and financial trauma caused by the sudden job losses. He stated that TCS's actions cannot be considered restructuring but rather a mass sacking disguised in corporate language.

Market analysts believe that TCS's decision to cut 12,000 jobs will send shockwaves through the tech industry, which is already grappling with global economic challenges. India's leading IT firms have reported single-digit revenue growth in Q1FY26 due to macroeconomic instability and geopolitical tensions affecting global tech demand.

Global Layoff Trends

According to Layoffs.fyi, over 80,000 tech workers have been laid off across 169 companies in 2025 alone. In 2024, 1.5 lakh employees were affected across 551 companies. These figures reflect global economic issues and debates about AI's impact on jobs. Microsoft has also laid off over 15,000 employees in 2025, representing 7% of its global workforce.

TCS's revenue grew by 1.3% year-on-year to Rs 63,437 crore in Q1FY26, with net profit rising by 5.9% to Rs 12,760 crore. However, TCS MD and CEO K Krithivasan noted a demand contraction due to ongoing macroeconomic uncertainties. He does not anticipate double-digit revenue growth in FY26 and hopes discretionary spending will resume once uncertainties diminish.

Calls for Government Action

NITES has called on the government to halt all terminations at TCS and reinstate affected employees. The union also seeks an investigation into forced exits and delayed onboarding practices at TCS. NITES advocates for stricter safeguards in the IT sector to address the lack of enforceable employment protections.

If these issues remain unaddressed, NITES plans to organise nationwide protests and legal campaigns with allied IT employee unions across India. The aim is to ensure that the voices of affected employees are heard and their rights protected.

Microsoft CEO Satya Nadella recently addressed layoffs in a memo to over 200,000 employees. He acknowledged the emotional toll of layoffs and described success in the tech industry as dynamic and demanding but also an opportunity for greater impact.

With inputs from PTI