TCS Layoffs Protest: IT Union Claims Job Cuts May Hit 40,000 Workers, Tech Giant Denies Large-Scale Layoffs

Tata Consultancy Services (TCS), India's largest IT services firm, is under fire after allegations of large-scale job cuts surfaced earlier this week. On Tuesday, the Union of IT & ITES Employees (UNITE) held coordinated demonstrations across multiple Indian cities, protesting what they claim is a widespread downsizing exercise that could affect between 30,000 and 40,000 employees.

Protest Against TCS Layoffs in Chennai

The protests were supported by the Centre of Indian Trade Unions (CITU) and drew attention to what the union sees as a growing trend of replacing experienced professionals with fresh graduates hired at lower salaries as per the report of The New Indian Express.

TCS Denies Large-Scale Layoffs, Admits to 2% Workforce Reduction

In response to the allegations, TCS issued a statement denying any large-scale retrenchment. The company clarified that the reduction in headcount is limited to about 2% of its global workforce, translating to around 12,000 roles. TCS emphasized that the changes are part of routine business restructuring and not indicative of mass layoffs.

However, UNITE leaders have challenged this figure, expressing concerns that the actual number of job losses may be much higher and could continue to climb if the company persists with its current strategy.

Chennai Protest Highlights Workforce Displacement

In Chennai, one of TCS's major operational hubs, the protests took a more vocal form. UNITE members gathered to protest what they called an "unjust removal" of mid- and senior-level employees. Protestors claimed that these experienced professionals were being pushed out to make room for entry-level hires, who are being offered significantly lower compensation packages.

"TCS is in the process of laying off staff at senior and managerial levels. At the end of this, nearly 30,000 to 40,000 staff may lose their jobs," said Janani, a representative of UNITE, during the protest to TNIE.

The union also called on the government to intervene immediately, pointing out that such actions by a top IT employer could set a concerning precedent for the broader industry.

In a press release, UNITE raised questions about TCS's financial decisions, alleging a mismatch between profitability and employment practices. The company reportedly posted revenues of Rs 2.55 lakh crore, with an operating profit margin of 24.3%. Despite this strong financial position, TCS plans to cut thousands of jobs while simultaneously distributing a dividend payout of Rs 45,588 crore.

The union further criticized the pay disparity within the organization, alleging that while top executives continue to receive large compensation hikes, regular employees face stagnation or job cuts.

UNITE is urging TCS to prioritize reskilling and upskilling initiatives instead of laying off experienced workers. The union argues that investing in training programs would not only retain valuable talent but also prepare the company for evolving technological demands.

Additionally, UNITE has expressed disappointment over the government's silence on the issue, particularly given that TCS continues to receive public sector contracts. The union called on authorities to take a stand and ensure that companies benefiting from public funds are held accountable for their employment practices.

As of now, no formal response has been issued by the Ministry of Labour or other government agencies. However, UNITE has indicated that if the issue is not addressed, nationwide protests may intensify in the coming weeks.