More bad news for Ratan Tata’s TCS after it plans to lay off 12000 employees, case filed by…, crucial meeting on…

Ratan Tata's TCS is set to lay off 12,261 employees, with the majority of those impacted belonging to middle and senior grades.

Once known for offering stable jobs with impressive salaries, Tata Consultancy Services (TCS) 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.

What triggered TCS to lay off 12,000 employees despite a strong market presence?

In an official statement, TCS stated that 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. It is to be noted that TCS is India’s largest IT services firm. As of June 30, 2025, TCS’s workforce stood at 6,13,069. It increased its workforce by 5,000 employees in the recently concluded April-June quarter.

Why has NITES written to the Labour Minister over TCS layoffs?

Earlier, the Nascent Information Technology Employees Senate (NITES) approached Union Minister for Labour and Employment Mansukh Mandaviya and urged that the government issue a notice to TCS seeking an explanation. The IT employees’ union has termed TCS’s latest move as unethical, inhumane, and outright illegal.

Calling the move a blatant and wilful violation of the law, NITES alleged, “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 government. TCS has not complied with any of these legal requirements,” reported news agency PTI.

Why is the Karnataka IT Employees Union (KITU) opposing TCS’s layoff decision?

According to a MoneyControl report, it is also noted that Karnataka State IT/ITeS Employees Union (KITU) filed a complaint on July 30. The representatives of the employee union met Additional Labour Commissioner G. Manjunath and filed an industrial dispute against TCS relative to its planned mass layoffs in the financial year 2026.

The report further mentioned that the union is demanding legal action against TCS management for allegedly violating the provisions of the Industrial Disputes Act, 1947, along with breaching conditions set by the Government of Karnataka related to the mandatory reporting of employee service details.

In a statement, the Union stated,” According to the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior approval from the government before carrying out any layoffs or retrenchments. Such retrenchments are permitted only for specific reasons and under conditions clearly defined in the Act. This well-established and consistently upheld labour jurisprudence has been violated by the TCS management, which has resorted to the criminal practice of forcing employees to resign,” reported MoneyControl.

When will the conciliation meeting between TCS and the labour department take place?

The union has asserted that TCS management breached the regulations and is requesting criminal proceedings against the responsible decision-makers. The union is asking the Labour Department to deliver prompt justice to the employees impacted by the layoff. According to sources cited by Moneycontrol, the Labour Department is likely to send a notice to TCS management after KITU filed a complaint regarding the recent layoffs. The department is likely to summon TCS for a conciliation meeting scheduled for August 6, the sources were quoted as saying by Moneycontrol.